Entry Load in Direct Mutual Fund Purchases to go?

If sebi has its way, direct investments in a mutual fund should be spared the burden of an entry load, which goes straight into the pockets of agents. However, Sebi has not made it clear by what extent it wants the maximum of 2.25% charged as entry load currently to be waived off.

The Sebi proposal is open for public comments till September 12, 2007. It seems like the agent lobby is already protesting.

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7 thoughts on “Entry Load in Direct Mutual Fund Purchases to go?

  1. see entry load has to be there… the fund manager has to pay to the brokers and guys who refer…
    even in IPO of shares this payment has to be made

  2. well this is ONLY regarding direct purchases through counter and through online purchases dont know the statistic but this will be good for a direct investor
    yes more than 80% (my estimate) goes thru the broker route nyways
    but this is a welcome step

  3. exactly… going by your own statistics… 80% of all investments come via brokers…. now the moment you stop charging entry/exit.. the broker commission will go down heavily…

    so what will they do… they will stop recommending mf to the investors… the last thing which mutual funds would want.

    the essence is whether you approach through the broker or direct/online.. the price has to be same.. if it is not then there will be a screwup.

    Ankur-
    Well ur right on that one bt thankfully the mfs and brokers dont make rules it is Sebi
    and id be very happy as a savvy investor if this comes into force . I dont expect the full2 or 2.25 % to go but maybe 75% of it

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