Capital fund fees and charges
Arvind Sehdev
(Querist) 21 March 2014
This query is : Resolved
Sir,
I invested in the Capital Funds/ Mutual Funds.
Committed an investment upto 25,00,000 (TWENTY FIVE LAKHS) and invested upto 17,50,000/- (SEVENTEEN LAKH and FIFTY THOUSANDS) (i.e. I made 3 payments in 3 calls).
I did not make rest of the investment as I did not receive my copy of the agreement upon entering into the contract with the investor and neither got it for past 3 years of the investment in the mutual fund.
Eventually I was declared as a defaulting contributor and a huge sum of money was deducted from my investment as management costs.
Neither was I given any returns on his investment for 3 years on the amount I so invested into the fund.
The amount was deducted on the counts of: a. Management fee on commitment amount upto commitment period (4 years) 2.25% - Rs.2,25,000.
b. Management fee on commitment amount upto commitment period (3 years) 2.25% - Rs.1,18,125.
c. One time setup fee on commitment – 1.00% - Rs. 25,000. d. Annual Fund Expenses - 0.50% - Rs. 62,500. A total amount of Rs. 4,30,625/- was deducted from the contributed amount and now I am given back Rs.13,19,375/- with no interest on the amount that he contributed and everything was said to be forfeited.
Question here is :
1. What is the limit of forfeiture that these mutual fund companies can do on an investment? If there is a limit then in what manner can it be forfeited and what amount?
2. Is there any way that I can get back my entire invested amount or atleast my share of the profit ?
3. How are these amount of management deductions computed or is it just the free will of the investment managers?
4. How can I go about this if I file a consumer complaint?
5. Are there any laws or judgments supporting my claim?
Regards,
ajay sethi
(Expert) 21 March 2014
it is difficult to believe that you invested such amounts without receiving copy of agreement . generally when application form is filed in copy of form along with details of scheme are forwarded to investor .
in order to eliminate any scope of misrepresentation by agent confirmation calls are made by manager of fund .
the deductions have been made as per clauses in agreement . doubtful you will get your entire amount back
T. Kalaiselvan, Advocate
(Expert) 23 March 2014
It is better to consult a local lawyer expertise in the field and proceed as per his advise.
Arvind Sehdev
(Querist) 24 March 2014
One says something other three quote the same thing....
No use asking you guys anything here........
this is a failed forum..
