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Entry Load

Mr. Bajaj has invested in funds via SIPs through a broker. He wants to know if there will be an entry load in the monthly deductions. The answer is yes, but here's a way to remove the entry loads

We have done our monthly SIPs through a broker. Will there be an entry load on monthly deductions which are automatically deducted from the bank every month?
— R P Bajaj

Yes. The entry load is levied on each monthly installment that is deducted from your bank account. This has been the case whether you purchase your fund through a broker or directly from the mutual fund.

But now, after the new guidelines of the Securities and Exchange Board of India (SEBI), if you purchase the units directly from the mutual fund, you will save on the entry load. For this, you will have to write to the asset management company (AMC) to make your future SIP investment in 'Direct Mode' and remove the broker from your records.

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