Exit Load waiver give MF Companies a run for their money

Ever since SEBI directive came to waive off the entry load for all Mutual Funds, Asset Management Companies (AMC) are in a hurry to close their NFOs before the deadline of 01st of August 09. Most of the comanies are closing their New Fund Options on 31st July 09. Even though the directive says that the NFOs opened before 01st of August can continue to charge entry load for the same, but the AMCs want to play a safe game and to avoid any complications leading to further confusion among investors, they are closing their NFOs by the end of July.

Even when SEBI had waived off entry load for direct applications, the AMCs had resorted to a similar behavior, but their concerns were brought to rest when the no. of direct applications accounted for only single digit percentage of all. At that time, some of the organizations had gone on to express their displeasure, stating that their objective of entering the rural market itself will be defeated by this step taken by SEBI.

Anyways, for a lazy individual investor like me who finds it too much of a task to send direct applications, its a welcome step by SEBI and it will be a further help in increasing my market investments.