https://v2.webnotes.in/categories/historical/Recent content in Historical on WebNotesHugoen-INMon, 18 May 2026 00:00:00 +0000https://v2.webnotes.in/entry-load-mutual-fund-historical/Mon, 18 May 2026 00:00:00 +0000https://v2.webnotes.in/entry-load-mutual-fund-historical/<p><strong>Entry load</strong> was an upfront charge on mutual fund purchases prevalent in Indian mutual funds until August 2009. The entry load was deducted from the investor&rsquo;s subscription amount before allocating units, typically at 2-2.5% for equity schemes.</p> <h2 id="pre-2009-framework">Pre-2009 framework</h2> <p>Until August 2009:</p> <ul> <li><strong>Entry load</strong>: 2-2.25% deducted at purchase.</li> <li><strong>Used for</strong>: Distributor commissions, AMC marketing, fund-house operational costs.</li> <li><strong>Investor impact</strong>: Upfront cost reducing initial unit allocation.</li> </ul> <h2 id="sebi-abolition-august-2009">SEBI abolition (August 2009)</h2> <p>SEBI abolished entry loads on mutual fund purchases through a circular effective 1 August 2009. Key changes:</p>