SEBI has mandated effective 1st August 2009, that there can be no entry load in any mutual fund scheme in India. This means the average 2 % entry load (charge) that was being deducted by AMC (Asset Management Companies) while investing / purchasing a mutual fund scheme, WILL NOT BE CHARGED from 1st august onwards.
This means all the money that you write check of is being used to purchase units at the prevailing NAV. Also there is a circuler restricting the charge of exit load to a maximum 1% till end of 1st year & no exit load from 2nd year onwards.
Essentially, investor friendly decision taken by SEBI.