At last it has happened. 3 cheers for SEBI and Mr. Damodaran.
We have tried to make 2008 happier for mutual fund investors,” is what SEBI chairman M Damodaran had to say on the last day of 2007. Beginning January 4, 2008, mutual funds investors will not have to pay entry load if they buy funds directly from mutual fund companies. Such purchases can be made either through the internet, or through applications submitted directly to the AMCs or their investor service centres.
The load waiver would also be applicable to additional purchases done directly by the investor under the same folio and switch-ins to a scheme from other schemes.
A majority of mutual funds charge 2.25 per cent entry load for their equity schemes, which is used to pay for the commission of the agents and distributors and meet other marketing and distribution expenses.
These changes were first proposed by SEBI back in August 2007.
Wishing all a very happy and prosperous new year.
Wadiaz
3 comments:
Hi,
I invest in MFs using online trading a/c with ICICI Direct.
I already have investment in Sundaram BNP Select Midcap.
If I buy more units of Sundaram BNP Select Midcap through my online trading a/c with ICICI Direct, will I be charged entry load of 2.25%?
Pls advise.
Thanks in advance
Dear Ajit,
More clarity is needed on this. I will get back to you if i know for sure if this is possible.
Hi, Ajit,
Yes, now it is clear that ICICI Direct will charge you their commission if you invest throgh them as they act as brokers and this is not considerd as direct investment.
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