SEBI has give up entry load on direct mutual fund applications from 4 January 2008. The entry load exempt for application is not routed via distributor, agent or broker. The exemption is for investments in existing & new schemes and also for additional buys by investor under same folio. The investors switching-in to a scheme from other schemes will also get an exemption.
Entry load is levied by a mutual fund when an investor invests in a scheme. Open-ended mutual fund schemes charge between 2- 2.5% of the amount invested as entry load to meet their marketing costs and distribution commissions. On the other hand, close-ended schemes are permitted to charge up to 6% as initial issue expenses that are amortized over the life of the scheme.
Entry load is levied by a mutual fund when an investor invests in a scheme. Open-ended mutual fund schemes charge between 2- 2.5% of the amount invested as entry load to meet their marketing costs and distribution commissions. On the other hand, close-ended schemes are permitted to charge up to 6% as initial issue expenses that are amortized over the life of the scheme.
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