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.?
