Mutual Fund commission related feedback to SEBI

Bhupesh has left an important piece of information regarding the feedback from individual investors to SEBI, for its proposal on waiving off the entry load charges and distribution costs if mutual fund units are directly bought by the investor from the fund management company.

I believe this is an important piece of information and should be placed as an article, because readers usually don’t read all the comments on the past articles.

Thanks Bhupesh for contributing this. Please keep up the good work!

Information from Bhupesh follows:

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 @ ruchic@sebi.gov.in.

Probably you should include this information in your article so that people who feel strong in favor of this proposal can send comments to this id.

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I want share what I have sent to SEBI.


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I vote for this proposal.

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.

If there are some charges even for direct investing with AMC, It
should not be more then ..

1) Lowest % amount charged from an investor.
( e.g. Nil if a Mutual fund house charge nil entry
load for investment over 5 Cr.)

2) Maximum of ( [50% of Normal entry load] or [Entry load - 1%])
( e.g. If normal entry load is 2.5% , ( Max [1.25,
1.5]) = 1.5%)
( e.g. If normal entry load is 1.5% , ( Max [0.75,
0.5]) = 0.75%)


I do my research my self where to invest ? how mutual fund have done
in past and what are the current holding of the fund etc .. . I
always used to feel disheartened while giving 2.5 % commission to
broker for channeling my form to Mutual Fund house. They also do not
provide good service of collecting redemption slip.
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End of Info from Bhupesh

You may be interested in reading my previous articles. Here is the link to Table of Contents in a chronological order.