It has now been a month since the Securities and Exchange Board of India’s (SEBI) new rule on the abolition of entry loads on mutual funds sales came into effect. As most investors should know by now, mutual funds no longer deduct an entry load from the amount invested. Earlier, this amount was used to pay most of the commission that funds disburse to the distributor who sold you the fund. From August 1 onwards, the entire amount that you write on the cheque is invested in your name - none of it is deducted for any purpose.
HelpLatest News & Updates!
Funds look for loopholes
Wed, 08/05/2009 - 13:13 — adminBy Dhirendra Kumar
August 4, 2009
As every mutual fund investor in the country must know (or should know) by now, entry loads on mutual funds have been abolished from August 1. Now, the entirety of the sum you invest will actually get invested in your name. Entry loads were used by funds to help remunerate the fund distributor who serviced you. Now, you will have to separately pay the distributor for his services an amount that you can mutually fix with him as fair payment for his services.
IRDA leaves investors in the dark
Tue, 07/28/2009 - 09:41 — adminBy Dhirendra Kumar
27/7/2009
A couple of days ago, the Insurance Regulatory and Development Authority (IRDA) issued a circular that brought in a set of new rules governing unit-linked insurance plans (ULIPs) offered by insurance companies.
MFs Get NFO-Happy on Deadline
Mon, 07/13/2009 - 13:55 — adminJuly 13, 2009
After being floored by the law change that banned the charging of entry loads from investors by distributors by the Securities and Exchange Board of India (SEBI), the mutual fund (MF) industry has suddenly become a hub of hectic activity.
The reason behind the hustle and bustle is the industry’s desire to beat the SEBI-set deadline of August 1, when the rule comes into effect that will prevent investors being charged for investing in MF products -- irrespective of the mode of investment, direct (with fund house) or indirect (through distributor).
POWER QUOTIENT
Copyright © 2009. All rights reservedd.