SIP and entry load

Not long ago, there was a time when SIP were not charged any entry loads. A couple of years ago some fund houses started charging loads.

Now different funds charge different rates for SIP as a load. Some charge NIL load while others charge almost the full entry load of 2.5% as that of normal purchase.

Although this amount or percentage may look small, it may add up to a significant amount . The returns you get out of the fund will come down to this extent. So, when there are two funds of comparable track record that you are planning to invest in...look the entry loads on SIP...This should also be considered for choosing an SIP in a fund.

This articles pertains only to SIP and entry loads...Don't rush to an NFO for the reason that an entry load is being waived.