Two awesome ways to pay less or no entry load for MFs:
1. Put your money in a 0 load liquid fund of any fund house. Then do a STP (Systematic Transfer Plan) of minimum 4 times (can also be weekly for 4 weeks) to any equity fund of your choice of the same fund house. That way you don't pay entry load to those equity funds.
2. Pay 0 to 1% entry load to get into any index fund of a fund house and then do a "Switch To" any equity fund of your choice among the funds from same fund house. For that there is no entry load.
This is out of my reearch. Any comments are welcome.
Subscribe to:
Post Comments (Atom)
2 comments:
You are DEAD WRONG...
1. Only DSPML allows discounted entry load (1% instead of 2.25%) for SIPs & STPs. All other fund houses charge same entry load for SIP/STP or lumpsum. The SIP discount was available about 2-3 years back & has been phased out in almost all fund houses...
2. In case you switch units, you will pay the differential entry load, so this strategy will not work.
In case you have actually executed these 2 options, please present evidence of the same so that others are not misled unintentionally.
Now that direct investments don't attract any entry load - we may all enjoy. BTW - in reliance fund house, it was never charged any entry load for STP (Systematic Transfer Process). You can see reliance form on their website to find the evidence.
Post a Comment