Beware of ICICIDirect cheating small investors!!

[sindhunk]

From Aug 1'st no entry load!
Is it true or false? who is going to benefit? god only knows.

Here is what i tried on August 2nd.

:annoyed:

Fund Name : RELIANCE MUTUAL FUND
Scheme Name : RELIANCE REGULAR SAVINGS FUND-EQUITY PLAN-GROWTH OPTION
NAV : 23.1115 as on 31-07-2009
Unit Face Value : 10.00
Cut-Off Time : 13:30 Hrs.
Minimum Amount : 500
Div-Reinvestment :
Amount : 500
Transaction Charge : 100.00
Service Tax Amount : 10.30
Gross Amount : 610.30
I accept the Terms & Condition for Mutual Funds :


You would loose 20% if you use ICICIDirect.com.
What SEBI did for indians?

 

[sindhunk]

Watch out!!!!!!!!!!!


Updated on August 24th 2009

AUM Cut-off PURCHASE TRANSACTIONS SIP TRANSACTIONS Service Tax per Transaction %
Charge Type Charge per Transaction Charge Type Charge per Transaction
Less than Rs. 8 lakhs Flat Rs. 100.00 Flat or Percentage Rs. 30 or 1.5% whichever is lower 10.30 %
Rs. 8 lakhs or more NA Nil NA Nil Nil


* Transaction Charges will be charged on each investment made vide a Systematic Investment Plan (SIP) at the prevailing rate for all SIPs registered from August 1,2009.

The "AUM cut-off" or "cumulative value" of your investments will be taken as per Value at NAV of your entire MF holdings, at the time of order placement, as seen on your MF Unit Holdings page. Transaction charges will be applied as per the new fee structure, accordingly.

The new fee structure applies to all Mutual Fund purchases (excluding those in Liquid fund schemes), started on or after August 1, 2009

 

[MurAtt]

ICICI is not cheating. If you read the SEBI order you will find that it has demolished the Entry Load BUT service providers will charge a service charge as they deem fit.

It is like a Lawyer / Consultant who puts a worth on time n service provided by him/her. So for a particular case u may have the same end result but different charges charged by different service providers.

Here the case is same. SO - You buy from where you feel comfortable or where it is cheaper and comfortable.

At least the upside is you are getting FULL UNITS and investment of your Hard-Earned-Money.

 

[gabbar.singh]

You would loose 20% if you use ICICIDirect.com.
What SEBI did for indians?

SEBI doesn't control ICICIDirect.com. If you buy directly from the AMC, you will not be charged entry load.

 

[ashii]

Yes,Very Bad For ICICIDIRECT
I usually invest 500 or 1000 and I just calculated until I invest 4500/- in 1 Go I am at loss

However its good if you want to invest more money in 1 go!

anybody have an idea what HDFC is Charging in new rules?

 

[BrokerJi]

Well from my personal experience I would suggest you to invest directly with the fund houses, as they all have offices atleast in all major cities.
In fact you can also time the investment this way to get those extra basis points benefit. :thumb:

 

[pnrajeshmenon]

I dont believe ICICIDirect cheats. I had got this clarified before investing through ICICIDirect.

If your cumulative investments in Mutual Funds thru ICICI are less than 8 lakhs, then the below is tariff.

Mutual Funds - Fee Structure Rs. per transaction
For SIPs 30/-
For Lumpsum investments 100/-

If cumulative investments are more than 8 laksh the above charges are nil.

However, any upfront commission payable to ICICI additionally is not known so far.

 

[ashii]

They are defiantly cheating,How you can justify a fees of Rs 110 On an investment of 500 (which is minimum investment required by most ELSS schemes)They make fool of SEBI on their own rule.

SEBI must issue a fresh guideline restricting fees to a certain maximum % values of investment,They main purpose of SEBI is too protect small investors

 

[sindhunk]

% Entry Load From Aug 09 on ICICI direct - Really a stupid one.
This is really not easy, having 8 Lakhs MF portfolio all the time with ICICIDirect.com..

They know that it's hard and SEBI knew it... What the ad says..?

0% entry load from August 1'st, this is absolutely wrong.

they should write its not 2.25% entry load, now it is 30% entry load.

 

[ashii]

Under Public Pressure ICICIDIRECT reduced the fees for SIP to RS. 30/- OR 1.5% (whichever is lower) Yesterday
Let's see if they are forced further to reduce it for general Investments too

I am defiantly NOT going to use them any further if I get hold of a less fees option