[ad_1]
If an investor invests in a mutual fund scheme through a broker in India, he is generally charged an entry charge of 2.25%. Depending on the performance of the distributor the broker gets a commission from the asset management company normally @ 2% to 2.25% or even more. Since the entry load is deducted, the investment amount reduces to that extent.
Why is the investor investing through a broker, he believes that the broker is providing him advice for selecting the right mutual fund scheme, he expects good after sales service and off course marketing skills of the broker . In the interest of investors, the Securities and Exchange Board of India has issued guidelines according to which no entry load will be applicable for direct investment in mutual fund schemes through the fund house. That is, the entire amount will go into investment.
These guidelines are definitely beneficial for the investor. But only 5% of the investors are availing this facility, mainly because the investors do not get after sales service from the fund house. Apart from this, people who know about the market and mutual funds generally opt for direct investment. If the investor gets advisory and value added services along with the option of no entry load facility then he/she would definitely consider it.
This is the best option for investors to invest in mutual funds without paying any charges. Some brokers have already started giving this facility to their investors to invest without paying any entry load, in which case they only expect the investor to transfer his direct investment through the concerned broker.
Maximum investors should take advantage of this opportunity. one can visit the site [http://www.noentryloadmutualfund.com] for reference.
[ad_2]