Entry load waived on direct mutual fund applications

Markets Bureau
Posted: 2008-01-01 00:00:00+05:30 IST
Updated: Jan 01, 2008 at 0202 hrs IST

Font Size

Feedback

Discuss

SEBI monitoring market situation closely

Mumbai, Dec 31 : The Securities and Exchange Board of India (Sebi) has given a New Year gift to investors. The regulator has finally decided to waive the entry load for direct applications, effective from January 4.

In a circular, Sebi said no entry load would be charged for applications received directly by asset management companies on the Internet or at collections centres.

In other words, the entry load will be waived if applications are not routed through distributors, agents or brokers.

Sebi said, the waiver will be applicable to investments in existing schemes from January 4 and to new schemes launched on and after the date.

Reacting to the move, Samir Kamdar, national head (MF), Mata Securities, said, “It will sound the death knell of open-ended funds as no one would market them any more. This move will also drive the fund industry, including the distributors, to sell only close-ended funds. It will skew the already unviable dynamics of the fund industry and give an unbeatable edge to the sales of unit linked insurance policieis. Investors, especially high networth individuals will take advise from distributors but would prefer to invest directly.”

Discuss this story on expressindia forums

Post Comments

Comments: (Limit 3,000 characters)

Name		Message
Email ID
Subject

TERMS OF USE:
The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).

I agree to the terms of use.

Latest News

Print Edition

Events

Entry load waived on direct mutual fund applications

Post Comments