​​​Management of Mutual Fund

25. Additional rules for long term funds (LTFs)

(1) The mutual fund management company shall establish a system for redemption of investment units, and a system for examination of purchase or redemption of investment units.

(2) Transfer of investment in investment units, as well as the benefits thereof from one LTF to another LTF, shall be completed within five business days.

(3) The criteria for dividend payment are different from other funds. The mutual fund management company may choose one of the following rules:

​(3.1) The dividend shall be paid from dividend or interest income received from any assets of the fund; 

(3.2) The amount of the dividend payment shall not exceed 30% of retained earnings or net profit in that accounting period, whichever amount is lower.

​The dividend payment shall not increase the fund's retained loss in the same accounting period of that dividend payment.