From 20 September 2024, an exit load of 0.25% will be charged if investors redeem their units within 7 days of investment.
Previously, no exit charge was applied to these funds.
This change applies to all potential investments made after the effective date.
What this means for investors
The introduction of this exit charge discourages short-term investments and is intended to promote longer holding periods.
Investors who wish to redeem their units within the 7-day period will now face an additional cost.
Understanding output load
A load of output It is a fee charged by mutual funds when investors withdraw their units before a specific period.
In this case, the exit charge of 0.25% means that for every ₹1 lakh units redeemed within 7 days, ₹250 will be deducted as fee.
The longer investors stay invested, the more beneficial it is, as they avoid this fee entirely after the 7-day period.
For those with short-term liquidity needs, this change requires careful planning before making any redemptions.
For long-term investors, however, the impact will likely be minimal.
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