No entry load for Mutual Funds!!!

[rckaushal]

It is learnt that MFs will no longer attract entry load. Seniors please enlighten.
Thanks.

 

[sachhi99]

As I understand, earlier the entry load was not charged if we apply directly to fund house.
Now, with the new rule - does it mean that even the agents(icicidirect,sharekhan etc) will not charge the entry load?
Current entry load is ~2.5% I guess. Will that be totally waived?
I dont think so. It will be made lesser though.
Please elaborate.

Also, what are the Pros and Cons of getting through the agent and buying from fund house.
Can we buy directly from fund house on their web site? What are other ways?

Sorry if its too obvious
Thanks,
-Sachin

 

[praveen taneja]

ya no entry load but what is of distibutor charge u for service???
and direct it was w/o entry load already only making people fool as per my thought

 

[abdriver2000]

Is it effective immediately?

In the new fee-based regime, the investor will have to decide on the 'fee' with the distributor. IMHO, I feel the load should not be more than 0.5%

I am sure agents will now start to push ULIPS more aggressively than MF because of much higher commissions.

 

[praveen taneja]

ohh yes agents get 15% in ulips and cust wont pay more then 1-2% and SEBI not clear about Trail?????
it is proposed not yet declared

 

[mrindia]

Hello all!
Definitely its a welcome step by SEBI. As rightly said, all "Direct" investments were already without entry load.
The new thing is that fixed 2.25% load for investments through any 'Broker' has gone. Those whosoever will invest through broker, they will be free to choose their commission, which will be paid by them of their own.
In other words, brokerage (load) will be negotiable. It will bring a healthy competition in portfolio management.
Further stated, SEBI has waived off PAN requirement for SIP investments till rs 50000. It will reduce un necessary paper work as most SIPs are via ECS or post dated cheques, & chances of money laundering are already very small.

mr india