SEBI & Mutual Funds – No load on Bonus and Reinvestment of Dividend

By | March 20, 2008

Starting April 1, 2008, Mutual Funds can no longer charge entry & exit loads for Bonus & Dividend Reinvestments. SEBI issued a new circular on March 18, 2008 to this effect. This move is based on recommendations from AMFI’s Working Group on Standardization of Key Operational Areas.

This is a welcome move. Dividends and Bonus are not new purchases. They come from the investor’s money. So why should the investor be made to pay a price?

Thanks SEBI.

(Business Standard has an article about this)