SIP Entry load Clarification?

Question

Hi, I am paying 1500/- for HDFC mutual Fund Every month. they deduct 2.25% of entry load every month before they bur units on my name. is this 2.25% non refundable?

Answer 1

Yes it is non-refundable and you need to pay it when you buy the MF thru an agent. According to new rules if you buy the MF yourself directly from the AMC (Asset Management Company) you will not be charged this 2.25% entry load.

Answer 2

Entry load will be fixed for a fund and is non-refundable

Answer 3

Yes. it is not refundable. Exit load also there when u sold

Answer 4

actually, you haven't mentioned full name of fund instead you just mentioned asset management name i.e.,HDFC.

But this is definately entry load is nonrefundable.

If you buy any scheme directly through asset management, no any entry charge would be applicable,whether in SIP mode or lumpsum mode.

Answer 5

Yes, it is non refundable.

Answer 6

It is not refundable, and there is nothing much you can do about it. Some portion of 2.25% goes to your agent/adviser, as his/her commission. This is fair as long as the adviser has not charged you additional consultation fees and has given you sound advise, with your interests in mind.

It's altogether different, if the agent only helped you in filling the form and acted as a postman delivering the forms to the fund house. In such a case, If the 2.25% entry load is bothering you (The fund has to give returns of 2.25% for you to break even!), then may be you can try canceling the SIP, and starting the new one; this time through direct investment (at AMC or registrar Office).

-Ashwin

http://www.EaseOfMoney.com