If your systematic investment plan (SIP) has been up and running before 1 August 2009, the ban on entry loads by the market regulator, Securities and Exchange Board of India (Sebi), would not have benefited you until now. But there’s good news now. On the back of many investors canceling existing SIPs and starting new ones in order to save on paying the 2.25 per cent entry load on all their instalments, many mutual fund (MF) houses are now allowing existing SIP investors to re-register their existing SIPs in the new no-load arrangement.

What to do?

All you need to do is to register your SIPs afresh. Around 20 MFs confirmed to Outlook Money that they are allowing investors to re-register their SIPs. Check with your agent or call up your MF or your fund’s registrar to check if your fund is allowing this. If yes, you need to fill up a special form and submit it to either your agent or MF or your fund’s registrar. Few MFs like Fidelity and ICICI Prudential accept written requests, too, instead of a form. If your MF requires a form, get one from your agent or check out the fund’s website.

How it helps

Re-registering allows you to continue your existing SIPs with the same agent using the same agent code without paying any more entry load. According to many fund houses we spoke to, the entire process of re-registering your SIPs takes only about 15 days. Your SIP cycle does not get disturbed and your monthly instalments continue without disruption. Post re-registration, your agent will continue to get his trail commission as long as you stay invested.