SEBI has removed entry load to any mutual fund scheme from 1st August 2009 onwards. This is in continuation of previous post on "ANCHOR INVESTOR" in which SEBI decided to abolish the entry load.
It is decided through circular from SEBI , which has following announcements from SEBI
- No Entry load for all mutual funds scheme.
- Distributor commission to be disclosed on Scheme application form.
- From exit load which AMC collects, 1% has to be kept for paying commissions to distributors and has to be maintained in seperate account.
- Distributors should disclose commission paid by various mutual funds to investors related to schemes they propose or recommend to investor.
This circular from SEBI is applicable to
- Mutual fund investments or redemptions from 1st August 2009.
- New Mutual fund schemes or SIP(Systematic Investment plan) registered after 1st August 2009.
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