Ch.7 · NAV Calculation Rules · medium
What is a 'transaction charge' in mutual fund investments?
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EXPLANATION
Transaction charges were introduced in 2011 to compensate distributors for new investor acquisition. For lump sum investments above ₹10,000 via distributors: ₹150 is deducted for first-time mutual fund investors; ₹100 for existing investors. For SIP investments above ₹10,000 total, ₹100 is deducted from the first few instalments. Transaction charges are not applicable for Direct Plan investments.
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