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PGIM India MF has discontinued the payment of transaction charges to distributors. This change will be implemented from January 1, 2023.
After Quantum MF, PGIM is the second fund house to discontinue transaction charges to ‘opt in’ distributors.
In a notice, the fund house said, “Effective January 01, 2023, no transaction charges shall be deducted from the investment amount for transactions/applications received from the distributor (i.e. in regular plan) and full subscription amount will be invested in the scheme.”
Recently, AMFI allowed AMCs to decide if they want to continue to offer transaction to distributors. Distributors can levy a transaction charge of Rs.150 for getting a new investor and Rs.100 from existing investors if they mobilize Rs 10,000 or above. In SIPs, transaction charge is deducted in 4 instalments starting from the second month provided the total commitment amount is Rs.10000.
In another notification, the fund house said that it will suspend SIPs where SIP instalments miss 4 consecutive months. It said, “With effect from January 01, 2023, the SIP facility will automatically be discontinued in the system where 4 consecutive SIP instalments in case of Monthly & Quarterly frequency are not honoured.
