Mutual fund SIP investment

POSTED BY GYDPrasad ON March 27, 2012 9:22 pm COMMENTS (14)

Hi Manish,

I am investing in ICICI prudential Gold Growth fund via SIP, every month 1000/–

Complete 1000/- are not allotting , out of Rs.1000/-, Rs.25/- were debited against transaction charges. Is this mandatory . What is this called entry load??

Is there any way to avoid transaction charges , using the fund house. I am waiting for your reply,

Thanks in advance…

Thanks,
Yprasad.

14 replies on this article “Mutual fund SIP investment”

  1. GYDPrasad says:

    Ya, i want to start new investment in different Mutual fund. I will check the http://www.fundsindia.com platform. How to approach to them.. Is this is a secured transaction.

    1. Dear GYDPrasad, please the site & first of all read all the FAQs there. After that you may send a personal mail to get more answers for your doubts.

      Thanks

      Ashal

      1. Vinodh Kumar says:

        @Ashal, But I read somewhere/SEBI notification transaction charges are applicable only if SIP amount is 10000 or above. Can you please comment?

        1. Dear Vinod, Let me clarify it for you. The SEBI Circular says that –

          For a lump sum investment of 10K Rs. or a SIP investment of totaling 10K Rs. or more, the said transaction charge ‘ll be applicable. But it’s the choice of Distributor/broker/agent to charge the same or not.

          Many are charging it but fundsindia is not charging.

          Hope It clears your doubt.

          Thanks

          Ashal

          1. Vinodh Kumar says:

            @Ashal – Confused!! When SEBI says transaction charges are not applicable, how Distributor/broker/agent can charge? Currently I do SIP of Franklin Blue chip 2500/month via HDFC internet banking. I see 25 INR is charged for every sip in Franklin statement. Is this is right? Can you please advice?

          2. Dear Vinodh, Please read my reply again. I said – such transaction charge is applicable but it’s optional for the broker/distributor/agent to apply or not. In your case the broker is HDFC Bank & it has decided to apply the same.

            Thanks

            Ashal

  2. Sachin says:

    GYDPrasad,
    Never late, you can stop the SIP now and start fresh one immediately. As it doesn’t matter for your goal. Buy from any where who do not charge single penny. Few brokers (Indi Info Line) do not charge for mutual fund SIP. I don’t know about others. But ICICI broker charges for such thing. I prefer to go to mutual fund direct offices.

  3. GYDPrasad says:

    Hi Ashal,

    I am investing from 1 year…

    1. GYDPrasad, the money is charged for brokerage. If you want to save on it, please use http://www.fundsindia.com platform.

      Thanks

      Ashal

  4. GYDPrasad says:

    I think i was far behind the basics of Financial terms, ya have taken the SIP investment directly from ICICI bank, all done by bank employees. I dont know the ECS??

    1. Dear GYDPrasad, When did you start this investment, I mean the date?

      Thanks

      Ashal

  5. Sachin says:

    Go to Mutual Fund office directly and apply for new investment in SIP and sign ECS form.

  6. GYDPrasad says:

    Hi Ajay,

    It is automatically deducting from my ICICI bank a/c. I don’t have knowledge on fund house. Can you provide any reference to understand.

  7. Ajay says:

    Are you doing it through DEMAT ? Like ICICIDirect ? If so there are charges. Try doing it to the fund house directly or use a platform like fundsindia.com

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