Erstwhile, some mutual Fund investors needed to pay a fee to the company when they join a particular mutual fund scheme. Thus, the amount charged at the time of joining or entering a scheme is called as the Entry Load. Mutual Fund companies used to charge this amount to cover for distribution expenses.

As per the SEBI guidelines released in 2009, no entry load is applicable if the investor joins the scheme directly without any distributor. However, if the investor joins a scheme through a distributor or a broker, the investor can be charged for the advice. However, there will be no charge for “entering” a scheme by an AMC as Entry Load!