Ch.6 · Distributor Commission Structure · medium

When did SEBI ban entry loads for mutual fund schemes?

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EXPLANATION

SEBI banned entry loads for all mutual fund schemes effective August 1, 2009. Before this, AMCs charged entry loads of up to 2.25% from investors, which were paid as upfront commissions to distributors. The ban was a major reform to reduce mis-selling and make mutual funds more investor-friendly.

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