New year gift for MF Investors?

Effective Jan 4, 2008 Investors who submit their applications for purchase (or repurchase)  of units in Mutual Funds directly at the AMC or their approved Registrars,

This would not be applicable for those who apply through intermediaries.

So those investors who have ample time and substantial amounts for investment may decide to go direct but those who prefer convenience and service may still go through the brokers.

The impact of this ’sweetener’ on the volumes through  brokers would be seen over a period of time.  It is also worth watching whether the AMCs or their registrars are able to service the direct investors with reasonable level of efficiency and courtesy!

Is SEBI also considering waiving off the exit load (which is currently a deterrent to churning of portfolio and an additional source of revenue for the AMCs)  as well?

Interesting times ahead!

 

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