Categories: Mutual Funds

Entry Load

Entry Load is a charge or a commission levied on the investor during the purchase transaction of mutual funds. This is also known as Front End Load and such funds which levy an entry load are called Front End Load Funds. The entry load is deducted from the investment amount resulting in a reduction of the investment amount. Entry load is levied for covering the distribution and marketing costs of a fund.

What are SEBI regulations regarding Entry load?

In India, the Securities and Exchange Board of India (SEBI) removed entry load on mutual fund investments in the year 2009 and thus there is no Front end or Entry Load on mutual funds. There is however, an ‘Expense Ratio’ which is part of mutual fund structure for covering various operational and other costs for running a mutual fund.

abhilash.st

Share
Published by
abhilash.st

Recent Posts

PPF calculator

A PPF calculator is an online tool that helps you calculate the maturity amount at…

1 year ago

Non-Resident Indian (NRI) PPF Account

Non-resident Indians are not allowed to open a new PPF account. However, if a resident…

1 year ago

Minor Account

A PPF account can be opened by a parent or guardian on behalf of a…

1 year ago

Joint Account

PPF rules do not allow joint accounts. An account can only be opened in the…

1 year ago

Extension of PPF Account:

After the maturity of the PPF account, you have the option to extend it for…

1 year ago

Withdrawal

From the 7th financial year onwards, you can make partial withdrawals from your PPF account.…

1 year ago