2006-12-11 18:38:37 · 8 answers · asked by el 1 in Business & Finance ➔ Investing
NO
ONLY ENTRY AND EXIT LOADS
2006-12-13 19:43:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I guess the people who answered you so far don't know mutual funds. Yes you can pay a premium on a fund. If you buy a closed end mutual fund which is a fund who does not buy back it's shares they are traded on the stock exchange, If the fund is doing well and the value of it's holdings are worth $10 per share They could trade at $11 a share. Also some sell at a discount when the share price is lower then the value of stocks they hold.
2006-12-12 08:18:39 · answer #2 · answered by ? 6 · 0⤊ 0⤋
No my friend there are no premiums in mutual fund. You invest as much as you want, depending upon the days NAV, No units are alloted. Units are as good as n.o share, but with respect to the fund. But in case of equity fund you have to pay an entry load, and income fund exit load if redeemed before 6 months of investing. This is cut from the invested amount.
Premium is only applicable for Insurance.
2006-12-12 03:37:08 · answer #3 · answered by samratmsil 2 · 0⤊ 0⤋
No. Mutual Funds are not insurance policies. Mutual funds are investments which are meant to invest in the stock market indirectly through a FUND under supervision of well-experienced promoters or a team of fund advisors. These funds deals in debt and equity funds suitable to every body according to their jobs, earnings, risk taking capacity, requirements in future, etc. But, strictly it is advisable to consult a good advisor and to invest in a good fund because there have grown too much MUSHROOMS IN THIS FIELD which may be unhealthy to your health (i.e. money). Prudential ICICI and Reliance Mutual Funds have been experienced to be paying better returns.
2006-12-12 02:54:50 · answer #4 · answered by sanksi 1 · 0⤊ 0⤋
Yes, you pay an initial charge of about 3% plus other charges of about 2%,making about 5% total. Then annually, the managers will take up to 2% to cover their costs, huge salaries and bonuses and commission to their salesmen (called financial advisers).
2006-12-13 12:02:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋
There may be entry loads and exit loads which can be termed as premiums.
2006-12-12 12:24:44 · answer #6 · answered by cvrk3 4 · 0⤊ 0⤋
mr. samratmsil view is correct
2006-12-14 08:47:34 · answer #7 · answered by udayashanker k 3 · 0⤊ 0⤋
If you are investing then NO
2006-12-12 02:50:40 · answer #8 · answered by balaji s 1 · 0⤊ 0⤋