ICICIDirect Slashes SIP Fees

Yesterday 6th August 2009 I wrote about Mutual Fund Fees and included sample example of ICICIDirect and how you would pay more for SIP’s of amount 1000 and 500 and guess what. I got an email from ICICIDirect saying and I quote

Thus in case of SIPs, we would now charge Rs. 30/- per transaction or 1.5% of the transaction amount, whichever is lower. This would be effective retrospectively from August 1, 2009. To read the new fee structure click here.

To elaborate a little bit, let us take a small example:

If you have a SIP of Rs. 500/-, then what you were typically paying as entry load at 2.25% was Rs. 11.25/-. Under the revised charges of 1.5%, you pay Rs. 7.50/-, which is 33.3% lower than your previous charges.
Moreover, the charges on liquid funds, would be zero.

Now this also proves one of the major benefits I mentioned in Mutual Fund Fees about world of competition and how investors can benefit from it.