Waiver of entry load for direct applications for Mutual Fund investments
At present irrespective of the mode of entry, investors are required to pay the entry load.Keeping in mind the interests of investors and to facilitate the growth in Mutual Fund industry, with effect from January 04, 2008 , investors making applications for investments in Mutual Fund schemes directly without routing through any distributor/agent/broker i.e. through internet, submitted to AMC or collection centre/ Investor Service Centre would not be subject to entry load as per SEBI's new circular. This waiver shall also apply to additional purchases done directly by the investor under the same folio and switch-in to a scheme from other schemes if such a transaction is done directly by the investor.
The growth of mutual fund industry in the past years and the technology available for investments has enabled investors to take informed decisions and to invest in mutual funds through internet and other modes without availing of services of distributors/ agents/ brokers.
There was an overwhelming response in favour of the proposal by SEBI on waiver of entry load for investors who do not route their mutual fund applications through a broker/ distributor.
Read full text of the circular at...http://www.sebi.gov.in/Index.jsp?contentDisp=WhatsNewScroll&FilePath=/circulars/2007/mfdcir1007.html
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