Mutual funds related FAQs

Do I need to pay entry charge to the person who sells mutual fund scheme ?

Mutual fund schemes are exempt from entry charges, as stated above. A distributor can be paid by an investor based on how the investor evaluates various factors, including the services rendered by the distributor. AMC pays commission directly to distributors for investments made through distributors. This ensures that an investor's total expense ratio is within the limits set out in regulation 52 of SEBI (Mutual Funds) Regulations 1996. Investors are responsible for paying the same cost as the SEBI Regulations. Distributor can also levy transaction charges of INR 150 or INR 100 for each subscription above INR 10,000 by new investors and existing investors, respectively. If a distributor has agreed to charge transaction charges for this type of mutual fund scheme, then this transaction charge may be levied. The transaction fee, if any is, will be deducted from the subscription amount by the AMC and paid to distributor. The balance must be invested.

Who can be eligible for investment in mutual funds ?

What does Net Asset Value (NAV ) refers to ?

What does Purchase Price means ?

What does Redemption Price means ?

What does Exit Load means ?

What does the Scheme Information Document and the Statement of Additional Information means ?

What is the importance of the Scheme information Document and Statement of Additional Information to investors ?

What does cut - off timing means ?

What does Current Value of investment means ?

When Net Asset Value is announced ?

After making investment ,how i will receive my account statement ?

What can a person do if he does not receive account statement ?

What are the steps for Redemption ?

What Systematic Investment Plan (SIP ) does works?

What Rupee Cost Averaging does works ?

Can an investor have directly redemption proceeds to his bank account ?

What documents need to be submitted with a purchase application ?

What is the history of indian mutual funds and role of SEBI in mutual funds in India ?

In what form mutual fund is set up?

What does sector specific funds work ?