Let client Know - NO Entry load on SIP!!

Let client Know - NO Entry load on SIP!!

As per the new SEBI circular, there shall be No Entry Load for all mutual fund schemes.

Applicability:

No entry load shall be applicable for:

a. Investments in mutual fund schemes (including additional purchases and switch-in to a scheme from other schemes) with effect from 1 August, 2009 ;

b. New mutual fund schemes launched on and after 1 August, 2009; and

c. Systematic Investment Plans (SIP) registered on or after 1 August, 2009.

What to do with running SIPs of clients?

It is clear that existing SIPs will continue to attract entry load, only those SIPs registered on or after 1 August 2009 will not attract any entry load.

Therefore, from investors’ point of view it is beneficial to re-register their SIPs to get away from the burden of entry load.

Actions required to avoid entry load: AMCs-wise

If AMCs is…

Reliance
Action-An investor just has to fill one form to re-register his/her SIP to avoid entry load. No benefit will be lost on SIP Insure (Please find attachment of form)

Franklin Templeton
Action-An investor just has to fill one form to re-register his/her SIP to avoid entry load.

DSP BR
Action-A consent letter from investor addressed to Ventura

All other AMCs#
Action-STOP existing SIP and RESTART it again

#Birla
Action-Century SIP should not be discontinued as this will lead to stoppage of insurance.


Note: AMCs are still contemplating on the procedure of applying No Entry Load on existing SIPs. Few more AMCs may come up with a Re-registration Form like Reliance and Franklin.

In case of further clarification do revert.