Comments on: No commission means no load? Wrong! http://www.subramoney.com/2009/11/no-commission-means-no-load-wrong/?utm_source=rss&utm_medium=rss&utm_campaign=no-commission-means-no-load-wrong Personal Finance Fri, 30 Jul 2010 08:26:25 +0530 http://wordpress.org/?v=2.9.2 hourly 1 By: Dr Mohammed Ali Khan http://www.subramoney.com/2009/11/no-commission-means-no-load-wrong/comment-page-1/#comment-1902 Dr Mohammed Ali Khan Fri, 06 Nov 2009 07:54:30 +0000 http://www.subramoney.com/?p=2562#comment-1902 "In a mutual fund when the great regulator SEBI says that there will be ZERO commission it translates to ZERO load. Which means if you invest Rs. 100 in a mutual fund the full Rs. 100 will get you units and there will be no charges" --- But Subra, What about the Asset Management Charges, Which are an average of around 2 % and is recurring every year.. Over a long time frame these AMCs are more costly compared to the Entry or Exit load. "His long lens of ‘good intentions’ seems almost humorous" ----"The road to hell is paved with good intentions" was a famous quote about communism.. Does it apply here? I recently took a Life Insurance ( Term not ULIPS.. Im a Subramoney.com reader now.. they can't con me ). The agent took away most of my hassles. He came to my house like almost 10 times.. He arranged for the medicals. He came back to give me the policy document.. There was a printing mistake.. He took it back and got it corrected and gave it back to me.. All with the convenience of me sitting in my home. Off duty hours too..in the evening.. Did I mind paying commissions to him.. NOT AT ALL..In fact, I would not have minded paying a little more for the hassle-free services he provided to me.. “In a mutual fund when the great regulator SEBI says that there will be ZERO commission it translates to ZERO load. Which means if you invest Rs. 100 in a mutual fund the full Rs. 100 will get you units and there will be no charges”
— But Subra, What about the Asset Management Charges, Which are an average of around 2 % and is recurring every year.. Over a long time frame these AMCs are more costly compared to the Entry or Exit load.

“His long lens of ‘good intentions’ seems almost humorous”
—-”The road to hell is paved with good intentions” was a famous quote about communism.. Does it apply here?

I recently took a Life Insurance ( Term not ULIPS.. Im a Subramoney.com reader now.. they can’t con me ). The agent took away most of my hassles. He came to my house like almost 10 times.. He arranged for the medicals. He came back to give me the policy document.. There was a printing mistake.. He took it back and got it corrected and gave it back to me.. All with the convenience of me sitting in my home. Off duty hours too..in the evening.. Did I mind paying commissions to him.. NOT AT ALL..In fact, I would not have minded paying a little more for the hassle-free services he provided to me..

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