Need Useful Tips About Mutual Fund Investment  – Read this Publication

Need Useful Tips About Mutual Fund Investment – Read this Publication

If you are interested in investment in any mutual fund scheme in India it will be interesting for you to read this publication as it is totally devoted to this issue. So, in the case any investor makes investment in any mutual fund scheme, in India, through broker it attracts entry load normally 2.25%. As a matter of fact the broker gets commission from Asset Management Company normally 2% to 2.25% or sometimes even more (the point is that it mainly depends on the performance of the distributor). You should also be aware of that because of the fact that the entry load is deducted investment amount reduces to that extent.

The other essential detail that is needed to be taken into consideration is why investor is investing through broker. You see, the truth is that it happens in this way according to the fact that he/ she believes that broker is providing him/ her with recommendation concerning the choice of the proper and most profitable mutual fund scheme. In addition every investor expect after sales service and off course marketing skills of broker. It is important to point out here that in the interest of Investors Securities & Exchange Board of India has issued guidelines according to which in the case anyone invests directly through Fund House in Mutual Fund Scheme there shall be NO ENTRY LOAD will be applied. In other words it simply means that entire amount will go to investment.

There is no doubt that these guidelines are really beneficial for the investor. But the point is that only 5% of Investors are availing this facility. You will probably wonder why it happens so. As a matter of fact things are like this mainly due to the fact that investors do not get after sales service from the fund house. It should be also pointed out that in addition to it those who are aware of the market and mutual fund are generally opting for direct investment. You need also to understand that in the case investor gets recommendation plus value added services with option of availing no entry load facility he/ she will certainly think for the same.

To make a long story short there is a need to add that it is the best option available for investors to invest in Mutual Fund without paying any charges for the same. As a matter of fact, there are a lot of brokers who have already started giving this facility to their investors of making investment without paying any entry load in this case they only expect from the investor to transfer their direct investment through the concern broker. Take all mentioned above into consideration and make your choice as it is only up to you whether you should use the help of investment broker while choosing the proper and most profitable mutual fund scheme.

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Posted in Finance on Jun 29th, 2009, 3:18 am by admin    

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