Do you know what it about?
Do you know what you pay while investing in MF scheme ..
If you invest 1 Lakh ... You pay 2250 as entry Load.
Any way fund also charges management fee from scheme corpus as their commission/fund management charge, that is their legal profit source which is not very visible to normal investors.
I will be very happy if this proposal survive stiff opposition from Mutual Fund houses.
I want to list advantage adopting no load entry :
1) It will help people switching (penalise) under performing schemes.
2) It will promote brokers to provide 2.5% commission worth of services.
3) It will make Mutual Fund more favorable mode of investment.
4) It will improve productivity in distribution/advertising.
5) It will stop bulling behavior from Bank to their customer to buy MF schemes.
SEBI should also mandate any exit load collected should get part of scheme corpus, if there any disadvantage in investor switching quite often on market movement, it is the remaining customer who suffer not the mutual fund house.
SEBI is also asking comments from public upon their "Proposal on waiver of load for direct applications in Mutual Fund schemes". Which can be sent @ firstname.lastname@example.org. Last date of sending comments is - 12 Sep 2007. If you feel strong about it send a comment to SEBI now.