SEBI/HO/IMD/PoD1/CIR/P/2024/150 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

SEBI/HO/IMD/PoD1/CIR/P/2024/150 November 05, 2024 To, All Mutual Funds (MFs) Asset Management Companies (AMCs) All Trustee Companies/ Board of Trustees of Mutual Funds All Registrar to an Issue and Share Transfer Agents (‘RTAs’) Association of Mutual Funds in India (AMFI) Sir / Madam, Subject: Disclosure of expenses, half yearly returns, yield and risk-o-meter of schemes of Mutual Funds Under the current regulatory framework for Mutual Funds, various disclosure requirements have been mandated, which include disclosures by Mutual Funds with respect to expenses and risks pertaining to schemes. In order to facilitate enhanced transparency, ease of comprehension by investors and a standardised approach towards disclosures by the Mutual Fund industry, based on the recommendation of Mutual Fund Advisory Committee, following has been decided: A. Disclosure of expenses, half yearly returns and yield of a scheme Investments under direct plan of a mutual fund scheme, which was introduced vide circular dated September 13, 2012 and came into effect from January 01, 2013, are investments which are not routed through distributors of Mutual Funds. As distribution expenses and commission cannot be charged to investors of a direct plan, the expense ratio of direct plan of any scheme is lower than that of the regular plan of the same scheme and hence the returns of the direct and regular plans also differ. Accordingly, disclosure of expenses, returns during the half year and yield of direct and regular plans shall be as under: 3.1.The expenses disclosed in terms of Sl. No. 6.4 of Twelfth Schedule read with Regulation 59 SEBI (Mutual Funds) Regulations, 1996 shall contain separate disclosures for total recurring expenses for direct and regular plans, apart from the disclosure of total rec