How does the new SEBI Guidelines impact my mutual fund transactions ?
SEBI Guidelines stipulate that with effect from August 1, 2009,there shall be no entry load for any Mutual Fund scheme whether existing or new. SEBI Guidelines further stipulate that investors will be required to pay upfront commission directly to distributors. This means that earlier if you invested Rs. 10,000/- in a mutual fund, your total invested amount was reduced to the extent of entry load charged ie Rs.225 (@ 2.25%) thereby making your actual investment Rs9775/-. However, w.e.f August 1, 2009, the entire Rs. 10.000/- invested by you would be your investment in the mutual fund. However, while you will not be charged any entry load, you will have to pay ‘Transaction charges’ directly to your distributor as per the applicable fee structure. Click here for more information on the I-Sec Fee structure.
