Various Fund Houses announces the Deduction of Transaction Charge from Subscription Amount for Purchase through Agents.

With effect from 1 November 2011

 

Accordance with the SEBI circular dated 22 August 2011 various fund houses like AIG Mutual fund, Principal Pnb Mutual Fund, Goldman Sachs Mutual Fund, JM Financial Mutual Fund, J.P Morgan Mutual Fund, Bharti AXA Mutual Fund and L&T Mutual Fund, UTI Mutual Fund, SBI Mutual Fund, Franklin Templeton Mutual Fund and others has announced that with effect from 1 November 2011, it shall deduct the transaction charges on purchase / subscription received from first time mutual fund investors and investor other than first time mutual fund investors through the distributor / agent. The charges are as under:

 

1) First Time Mutual Fund Investor (across Mutual Funds): Transaction charges of Rs. 150/- for subscription of Rs. 10,000 and above will be deducted from the subscription amount and paid to the distributor / agent of the investor and the balance shall be invested.

 

2) Investor other than First Time Mutual Fund Investor: Transaction charge of Rs. 100/- per subscription of Rs. 10,000 and above will be deducted from the subscription amount and paid to the distributor / agent of the investor and the balance shall be invested.

 

However, transaction charges in case of investments through Systematic Investment Plan (SIP) shall be deducted only if the total commitment (i.e. amount per SIP installment x No. of installments) amounts to Rs. 10,000/- or more. The transaction charges shall be deducted in 3 or 4 installments.

 

3) Transaction charges shall not be deducted / applicable for:
 

a) purchase / subscriptions for an amount less than Rs. 10,000/-
b) transaction other than purchases / subscriptions relating to new inflows such as Switch/Systematic Transfer Plan (STP) / Dividend Transfer Plan (DTP), etc;
c) transactions carried out through the stock exchange platforms.

 

Source: http://www.indiainfoline.com/Markets/News/Various-Fund-Houses-announces-the-Deduction-of-Transaction-Charge-from-Subscription-Amount-for-Purchase-through-Agents/3996483645

--
___________________________________________________________________________________
'I made my money by selling too soon.'

Website: http://indianmutualfund.co.cc/

Blog:http://indianmutualfund.wordpress.com/
___________________________________________________________________________________