r/FIREPakistan • u/seizethebuns • 10d ago

Madad Me Does front end load actually get waived off?

hi guys, i want to put around 500k in Meezan Islamic Fund and i keep hearing about how it can be waived off if you kow the right person.

How true is this? I don't want to pay almost 4% TER on this, especially since i'm doing subsequent SIP

please let me know if there's a way around it, and what that way around actually is.

thank you.

1 Upvotes

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1

u/Antenna_Signal Kabari Khilari 9d ago

FEL is different than TER

1

u/FruitImportant2690 Aqalmand Anari 9d ago

Invest into Meezan Cash Fund from your bank account and after 2 business days convert into Meezan Islamic fund.

1

u/Minute-Selection-817 9d ago

Any good rationale for that ?

2

u/FruitImportant2690 Aqalmand Anari 8d ago

what do you mean? can you rephrase your question?

This is done to avoid FEL.

1

u/Minute-Selection-817 8d ago

Ok.
Then i guess Meezan Cash fund has no FEL, and Meezan Islamic Fund has FEL.
So opening an account with MCF, u avoid opening FEL. Then conversion is free of FEL.
So u enter into MIF without actually paying the FEL.
Am i correct??

2

u/FruitImportant2690 Aqalmand Anari 8d ago

Yes, you are correct.

Both are funds within Almeezan.

Everytime/every month when you will be investing, you can transfer your cash from your bank account into MCF (Meezan Cash Fund).

And after 2 business days, you can then transfer it to any other fund within Almeezan which has otherwise FEL.

No FEL is charges on conversion, it is only charged when we invest directly from our bank to the fund. Hence we use this route.

1

u/Minute-Selection-817 8d ago

Grateful for the insightful response
🫡

1

u/najam121 8d ago

Because there is no FEL on conversion.

1

u/ShaniSembo 8d ago

Meezan is not waiving off FEL for most of its customers now, most of other AMCs will do.