Investing in Mutual Funds
Are you are the one who invests in Mutual Funds using your Demat Account or who loves its convenience? Well the good news is Reliance Money has finally revised its Mutual Fund Investment Fee with effect from 2nd February 2010.
As you might be aware SEBI had removed Mutual Fund Entry Load and had given the option to distributors to charge directly to the customer for the services they offer while investment.
Here is a comparison table for Mutual Fund Investment Fee for two biggest Demat players in India – Reliance Money & ICICI Direct.
| Investment Mode | Old Entry Load | Reliance Money | ICICI Direct | ICICI Direct (MF Value in acct > 8 Lac) |
| Lumpsum Investment | 2.25% | 75 | 100 | NIL |
| SIP Transaction | 2.25% | 15 | 30 or 1.5% whichever is lower | NIL |
*per transaction cost means it does not matter how much you invest. The charges are flat.
For ICICI Direct 8 Lac slab – the “cumulative value” will be taken as per Value at NAV of entire MF holdings, at the time of order placement, as seen on MF Unit Holdings page. Transaction charges will be applied as per the new fee structure, accordingly.
I would add more fee of more Demat Accounts as I get information about the same.
But even with the convenience of Demat Account, I still prefer direct investment in Mutual Funds via their respective online platforms. Recently more & more Fund houses are going online.
Other than this if you are looking for consolidated investment in MF from one single platform then new distribution models like – www.fundsindia.com & www.fundsupermart.co.in comes very handy.
One question that I find new investors often asking is – Do I require Demat Account to invest in Mutual Funds?
You do not require Demat account to invest in Mutual Funds. Infact investment in Mutual Fund through Demat account is costly and investors should prefer alternate channels for investment in MF.
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