| If any investor makes investment in any mutual | | | | These guidelines are certainly beneficial for the |
| fund scheme, in India, through broker it attracts | | | | investor. But only 5% of Investors are availing |
| entry load normally @ 2.25%. The broker gets | | | | this facility, mainly because investors do not get |
| commission from Asset Management Company | | | | after sales service from the fund house. In |
| normally @ 2% to 2.25% or even more | | | | addition to it those who are aware of the market |
| depending on the performance of the distributor. | | | | and mutual fund are generally opting for direct |
| Since the entry load is deducted investment | | | | investment. If investor gets advice plus value |
| amount reduces to that extent. | | | | added services with option of availing no entry |
| Why investor is investing through broker is that | | | | load facility he will certainly think for the same. |
| he believes that broker is providing him advice for | | | | It is the best option available for investors to |
| selection of right mutual fund scheme, he expect | | | | invest in Mutual Fund without paying any charges |
| after sales service and off course marketing skills | | | | for the same. Some brokers have already started |
| of broker. In the interest of Investors Securities | | | | giving this facility to their investors of making |
| & Exchange Board of India has issued | | | | investment without paying any entry load in this |
| guidelines according to which if anyone invests | | | | case they only expect from the investor to |
| directly through Fund House in Mutual Fund | | | | transfer their direct investment through the |
| Scheme there shall be NO ENTRY LOAD will be | | | | concern broker. |
| applied. It means entire amount will go to | | | | Maximum investors should take this opportunity. |
| investment. | | | | One can visit site for reference. |