HDFC MF guidance signals revenue fall after Sebi diktat; Q3 net up 25%

In December quarter, the fund house saw its net profit jump 25% on a year-on-year basis to Rs 243 crore

The HDFC Mutual Fund (MF) on Monday reported healthy financial performance, but guided for reduction in revenues after the Securities and Exchange Board of India’s (Sebi) mandated that all scheme-related expenses have to be borne into the schemes.

“SEBI circular dated October 22, 2018 has banned payment of upfront commission and mandated a full trail model for distributor commission. It has further mandated that all scheme related expenses including distributor commission shall have to be paid by the schemes of the MF and not by the AMC. As a result, HDFC AMC’s expenses will decrease since the scheme related expenses will