SEBI’s New Mutual Fund Expense Norms May Hurt Close-Ended Schemes Most

The upfront commission is amortised in the books of the AMCs and recovered from the scheme over its tenure. Close-ended funds were lucrative for distributors as they got commission for three-years upfront, said Kunal Bajaj, founder and CEO of Clearfunds. "It is highly unlikely that the distributors will continue to push these products,” Bajaj added.