Is a scheme great just because it doesn’t charge an entry load?
The costs of the fund management process that includes marketing and initial costs are charged when you enter the scheme. These charges are termed the entry load, the additional charge you pay when you join a scheme and something everyone will tell you to watch out for. And if there is nothing to watch out for, i.e., the bold font in the new scheme’s ad says `No entry load’. Will you jump for it? Come on, investment was all about smartness. No fund can do away with these charges unless, of course, a reformed Harshad Mehta decided he would help Indians make money without charging a rupee. What funds that come with such offers usually do is to include these charges not in the entry load but somewhere else. It could also be deducted from the returns that you get.
