Entry Loads Archives - indiabusinessview

Sebi opens backdoor for entry loads

July 28, 2011August 20, 2014Editor

Entry load in the guise of transaction charge for subscription

Sebi has said that distributors will now be allowed to charge Rs 100 per subscription for investments below Rs 10,000. A first-time mutual fund investor will have to pay Rs 150.

Impact:

Sebi bans differential exit loads

August 10, 2009August 20, 2014Editor

Sebi has issued a new circular to all mutual funds, barely a week after its rule banning entry loads came into effect. The capital market regulator has told mutual funds to charge exit loads uniformly to all investors. The move plugs any possibility of mutual funds compensating for the lack of entry loads by recovering expenses from retail investors, when they exit a scheme.

Entry load out from Jan 4, will investors go the extra mile?

December 31, 2007August 20, 2014Editor

Sebi has stuck to its word and banned the entry load on direct investments in mutual funds (without going through an agent/broker/collecting bank). It’s a welcome step as it instantly adds about 2% more to the capital invested by an investor, and hence the overall returns go up significantly in the longer run.