In online mutual fund , do they cut entry load and exit load.?



I have online hdfc mutual fund account linked to my saving account. I have also purchased few online mutual fund through it. But do they cut entry load and exit load.
Thanks in advance.

6 Replies to “In online mutual fund , do they cut entry load and exit load.?”

  1. Mutual fund companies don’t do anything for free. If they do cut entry/exit loads, then you’re paying a super-high hidden maintenance fee. Do yourself a favor, go ahead and buy A shares and pay the entry load up front. You’ll come out better in the end. NEVER buy B shares, and only buy C shares if you’re going to need the money w/in the next year or so.


  2. Entry loads have been waived off if you buy(direct purchase) Mutual Fund without any third party in between.
    I checked with few of the means to invest online in mutual fund and all goes through some interediatery channel so entry load applies.
    What I would advise you to go to Mutual Fund Office directly and then invest, Entry load would be 0%. In this situation you should be aware which all funds you want to invest in.
    For Exit load, it depends on the scheme and the time period for which you have invested.

    I assume question has been asked in Indian Context. My reply applies only to mutual fund houses operating in India.


  3. Entry & Exit loads are taken in most of the accounts.
    But there have been many reports that many of the online providers are waiving off the entry & exit loads for online investments. Please confirm with your service provider.


  4. No-load (no commission) Mutual Fund companies are the least costly to buy. Check out;
    T. Rowe Price
    Vanguard
    Fidelity
    Janus
    and 100’s more…… you want no-load…. low fee funds.

    Read: Mutual Funds For Dummies

    (“Remarkable” left this out because these companies won’t pay a commission…. No “A” B” or “C” class because there’s no commision).


  5. There is no entry load for online purchaes as those are considered a direct pruchase. But there is a small glitch. The AMC you are approaching for direct purchase may not give you much options. They only advice you to purchase their product. You are forced to buy from a few given funds. Whereas if you do it through an independent advisor they may give you many options as they are well versed with the performance of the funds as they are not bound to give business to any particular AMC.

    Anyway consider all aspects before purchasing a fund direct or otherwise.

    good luck!!


  6. Since hdfc is working as a broker (be it online/offline), u’ll charged with entry load.
    U’ll be charged with exit load always, u cn’t evade that by any means.





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