I will not prefer my money or my investments lying with a company that is trying to cut corners.
Answering Why fund house come up with NFOs? Why fund house don’t come up with new funds often? and When you should avoid investing in NFO?
SEBI has mandated Mutual Fund Houses to come out with two varying options for all their schemes, namely Standard and Direct. The standard version of all mutual fund schemes will incur a charge which will be treated as an agent fee or commission and the direct plan is free from any charges.
AMFI India has come up with ads – it is wiser decision to invest whatever little you can every month in Mutual funds. Can this Ads act be substitute to Entry load?
August 2009 is when SEBI abolished entry load on mutual funds but did it actually benefit the common man? I don’t think so. You may ask Why? And even argue that – I do not pay anything for buying mutual funds which means that I am benefiting a lot. May sound true but … let us see if it actually benefiting common man or not.
SEBI continues to reward retail mutual fund investors. It slashed Entry load & now stops lower exit loads for big investors.
Yesterday 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 …
SEBI has announced that no Mutual Fund house can deduct any amount as any kind of expense from the Investment done by the investor, knowingly or unknowingly.