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Mutual Funds Entry Load Stands Abolished | Good News

Posted By On 10:27 PM Under ,

1. SEBI deserves kudos where it has barred mutual funds from applying entry load to the extent of 2.5%. Entry load is the fees charged to the investors which is appl1ed by fund houses before they invest the latter's money in an MF scheme.

2. Thus it is a bonanza for the new investors as a fees to the tune of 2.5% under the viel of entry load was actually stopping you from becoming atleast a millionaire. One has to see this amount in terms of number of years and its compounding effect.

3. SEBI is finally showing its teeth to the industry as this diktat means that it puts extra money in the pockets of retail investors and it may in turn get the ire of mutual fund industry.
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