Direct Investment in Mutual Funds

[shah_rishi]

Dear Vasan,

whatwebsite do u use?

I am an NRI.... its been such a hassle to get the correct procedure on how to invest in MF or stocks..... finally ICICI have sent me a 30 page form to fill in and most of it I have not idea what it means......

Kotak reps visit my country for MF investments with whom we have already invested. They have told me they will be able to open up a PAN a/c and a demat a/c for me so I can buy shares and MF online through the kotak website...... does anyone use kotak online to purchase shares? or even do online banking with kotak? just wanna know what kind of service they provide....

thanks
rishi

I agree, Neither I use Agents, They are just bunch of cheeters, They suggest mostly wrong fund for Nowise investors and ask them to go for funds, which has yearly commitment(like every year invest 10K or 25K) so that they earn good money. They really dont care abt ur risk taking ability.

But What I tell here, is Investing using Net(dmat account or bank account) so that you can really track it on net and sell/accumulte whenever you need from your desk.

Just think of this case, I bought a MF today for 25K from some AMC and their office is in Bangalore. After 3 year I need money, But after 3 years
Case 1:
I am in Chennai, And Petrol cost may be 300 and to reach The AMC office it may even cost me 300(which is entry load today)

Case 2:
I am in US, UK or some foreign country, It is even more difficult to get my money in direct mode(i am not sure, IF there is any easy way to do it)

So , I always prefer to use Internet enabled transaction rather than Direct. But for sure, I may get some concept wrong(as this is not advertise as many agent loose commision)

My question is, Is there any way, where I can still Invest directly without entry or exit load, But invest through Internet, Possible?

 

[VasanSuccess]

Dear Vasan,

whatwebsite do u use?

I am an NRI.... its been such a hassle to get the correct procedure on how to invest in MF or stocks..... finally ICICI have sent me a 30 page form to fill in and most of it I have not idea what it means......

Kotak reps visit my country for MF investments with whom we have already invested. They have told me they will be able to open up a PAN a/c and a demat a/c for me so I can buy shares and MF online through the kotak website...... does anyone use kotak online to purchase shares? or even do online banking with kotak? just wanna know what kind of service they provide....

thanks
rishi

I am not NRI, I am Resident Indian. Just had an account with HDFC bank and they enabme MF transaction in Net banking login itself. Its very comfortable as transaction are transparent and seemless transfrer of funds.

If you get to open a savings account with HDFC, then MF transactiona re very easy. Dont go(or No need) for HDFC DMAT account,

 

[friend]

I am not NRI, I am Resident Indian. Just had an account with HDFC bank and they enabme MF transaction in Net banking login itself. Its very comfortable as transaction are transparent and seemless transfrer of funds.

If you get to open a savings account with HDFC, then MF transactiona re very easy. Dont go(or No need) for HDFC DMAT account,

I think u r talking of 'Investment Saving Acc' of HDFC. It enables MF purchase in netbanking itself. I also used it previously. But beware, entry load 2.25% is deducted via this channel

 

[VasanSuccess]

I think u r talking of 'Investment Saving Acc' of HDFC. It enables MF purchase in netbanking itself. I also used it previously. But beware, entry load 2.25% is deducted via this channel

Yes I am aware of it. But as a lazy guy, I feel more comfortable as i can sell , esp with open ended, when market is very up, and I am in office, I can just sell on that rate

also , If market is in deep red, I can enter as next day till 1.00PM i can buy MF at same rate through this channel. some benifit, with 2.25% entry load.

 

[pasha]

Agents still taking 2.25% entry load

Most of the MFs have started 0% entry load, except Reliance which still seems to kept their 2.25% intact.
However, the agents including reputed big name banks are charging 2.25% and are actively seeking business.

They will not tell you about the entry load unless you specifically ask, so be aware that you have the choice of investing directly.

 

[magnet]

Re: Agents still taking 2.25% entry load

i guess entry load is exempted if u go directly to the company fill the form and submit there..if u go through broker,agent,bank(person filling the form himself becomes an agen by stating he recommended u) than i guess they will take the load

 

[mrindia]

Re: Agents still taking 2.25% entry load

SEBI never waived off the entry load on applications submitted through brokers/agents. Only DIRECT applications are exempt from such load. The word 'direct' shuld be marked in the space given for 'brokers code' in your application form.
Happy investing
mr india

Most of the MFs have started 0% entry load, except Reliance which still seems to kept their 2.25% intact.
However, the agents including reputed big name banks are charging 2.25% and are actively seeking business.

They will not tell you about the entry load unless you specifically ask, so be aware that you have the choice of investing directly.

 

[Dipendra]

Load vs no load

It seems that its a gift that we don't have pay entry load if going directly to AMC.
But check out that most people invest through distributors and not directly.

With 30+ AMC in the market it is difficult for investors to approach them separately and maintain records separately if going online.
Check out the following page to Know more.

Godmind Mutual Fund Advisors - Load vs no load


Know more at
http://mutualfundadvisorindia.in

 

[sam_kuw]

Can anyone tell me whether there still is entry load for Reliance Diversified Power Sector Fund because their website(and other websites)are still showing an entry load?

 

[vipinshetty]

Can anyone tell me whether there still is entry load for Reliance Diversified Power Sector Fund because their website(and other websites)are still showing an entry load?

All mf still show it in thier offer document and other docs / website. I think they are allowed to show it but none of the mf's can charge for direct investments now which includes Reliance diversified power fund so you wont be charged......

in the same note there is now a possiblity that mf's may now introduce a exit load if you redeem within a certiain times, otherwise there may be direct investors who may use mfs for daily trading also .