No Load Funds

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[0/5]Total Votes [  ]  
Rate this page:
Investments in No Load Funds are devoid of commissions. No Load Funds have gained in popularity over the years.

Definition and features of the No Load Funds:

The mutual funds in India are broadly classified as Load funds and No load Fund. Out of the basic two types of mutual funds - the investment in No Load Funds does not attract any commission for such investments. In other words, No Load Funds can be bought without paying any commission. Another most significant feature of the No Load Funds is that it can be held for a longer term and the proceeds are generally reinvested further.

Furthermore, the profit accrued by investing in No Load Funds shows the exact profit earned on such investments. The Chapter III of the Income Tax Act, 1961 provides tax exemption on investment on No Load Funds. With the rise of the Indian mutual fund market, the popularity of no load funds has increased considerably much to the satisfaction of the fund managers.

Authorities to the No Load Funds in India:

The No Load Funds in India operates according to the guidelines laid down by the Association of Mutual Funds of India (AMFI). Further, the Association of Mutual Funds of India (AMFI) operates in accordance with the laid down guidelines of the Securities and Exchange Board of India (SEBI).

To knoe more about Classification of Mutual Funds click on the following links:

Last Updated 06/30/2011

>> More About Mutual Fund