What is stamp duty on SIP mutual fund?

The stamp duty is charged at 0.005\% as per the government’s order. Therefore, in this case, you will be charged a sum equivalent to 0.005\% of Rs 1 lakh towards stamp duty. Therefore, you will be allocated with fund units corresponding to the amount you are going to invest.

What is charged when an investor buys the mutual fund scheme?

Entry Load – This is charged at the time of investing in a mutual fund scheme. This amount is deducted from the fund’s Net Asset Value (NAV). Different fund houses charge different entry load fees. Generally, the charges are 2.25\% of the investment value.

Why do mutual funds have transaction fees?

Mutual Fund Loads Loads are fees charged to the investor when buying or selling certain types of mutual funds. The purpose of loads is to pay a broker or advisor for their services. Therefore, unless you are working with a broker or advisor, you should not pay loads of any kind.

What expenses Cannot be charged to mutual funds?

The mutual fund would sell the unit price higher than the NAV. At present Mutual Funds cannot charge entry load. Exit Load: The mutual fund would buy back the units at rate lower than the NAV. A Mutual Fund cannot use these charges for paying commission or meeting any of their expenses.

Do all mutual funds charge fees?

Regardless of the cost, all mutual funds have a fee referred to as an expense ratio, or sometimes called a management fee or an operating expense. This fee is deducted from the total assets of the fund before your share price is determined.

What are no transaction fee mutual funds?

A no-transaction-fee (NTF) mutual fund refers to mutual funds that do not charge trading fees for the transactions made. They are also known as no-load mutual funds. Investors can buy and sell the shares of a no-transaction-fee mutual fund without paying sales commission, which is favorable to them.

What is STT fee mutual fund?

Levy of Securities Transaction Tax