7 Management Fee

This topic provides information on the Management Fee.

Management fee is the periodic load charged by the AMC from the customer. This fee that the policyholder is charged will be used to pay the brokers their commissions. Management fee is calculated for the total holding in the policy, across all the funds and the amount is deducted from the customer’s holdings through a redemption policy transaction. An AMC, however, might not want to apply a fee on some funds. The Management Fee Applicability Detail screen allows you to apply a management fee to the funds you wish.

While generating a redemption transaction for the management fee; the system first checks if you have selected a fund against the field Preferred Fund For Redemption in the Unit Holder Maintenance Detail screen (refer to the topic Process Unit Holder Maintenance Detail in the Entities User Manual for further information on this screen).

• If you have, a redemption transaction will be generated for the fund you have selected.
• If you have not, a redemption transaction will be generated for funds you have marked as being applicable for Management Fee.

Note:

You can apply a Management Fee to funds through the Fund Manager component only.

The topic contains the following sub-topics:

• Process Management Fee Applicability Detail
  This topic provides the systematic instructions to apply a Management Fee to funds in a product.
• Management Fee Applicability Summary
  This topic provides the systematic instructions to perform the basic operations on the selected records.