Fund Management Charge Clause Samples
Fund Management Charge i. Under this Policy, the fund management charges are as follows: fund management charge (annual basis) 0.75% 0.85% 0.95% 0.75%
ii. This is a charge levied as a percentage of the Account Value and shall be appropriated by adjusting the NAV of the Fund on each Valuation Date.
iii. The fund management charge to be deducted on each Valuation Date will be equal to the annual rate as mentioned above divided by 365 (Three Hundred Sixty Five) and multiplied by the number of days that have elapsed since the previous Valuation Date. The fund management charge may increase from time to time after the prior approval of the Authority, but shall not exceed 1.35% (One and Thirty Five Hundredths percent) of the Account Value per annum in any event.
iv. The fund management charge would be subject to service tax and education cess, if any, as per the applicable laws and shall be entirely borne by the Master Policyholder.
Fund Management Charge. The Fund Management Charge (FMC) is not guaranteed and may be changed by the Company by giving at least six months notice to the Master Policyholders and subject to prior approval of the IRDA to the change. However, the maximum Fund Management Charge is set at 1.35%pa of the Unit Linked Funds under management. The following are the Fund Management Charges for both the ‘Debt’ and ‘Balanced’ Funds: The NAV for each Unit Linked Fund will be calculated by taking the lowest FMC i.e. 0.65%. As the FMC varies based on the size of the Fund, the difference between the applicable FMC and the FMC used in the calculation of the NAV will be charged to the Fund by de-allocation of Units. Fund size lower band Fund size upper band Charge applicable 0 999,999 1.10% 1,000,000 4,999,999 0.90% 5,000,000 9,999,999 0.75% 10,000,000 and above 0.65% At any time if the Fund size band changes, the corresponding Fund Management Charges can be applicable.