Widely read:
As per the new SEBI regulations, the AMC can charge a maximum 1 per cent exit load at the time of redemption. SEBI says that this exit load will be applicable for any redemption made after August 1, 2009. However, any customer who has invested in MFs before August 1, 2009 has already paid an entry load of 2.25 per cent and if he redeems his units after 1 August 2009, and if he is charged 1 per cent exit load, then it will be unfair on him. If everyone is charged an exit load of 1 per cent, then all the people who have invested in MFs before August 1, 2009 will actually end up paying 3.25 per cent. This is really unfair.
This article was originally published on July 22, 2009.
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