Which mutual fund has no exit load?
Exit loads on different types of mutual funds
Mutual fund charges exit load on various equity, hybrid and debt funds. However, certain types of debt funds, like overnight fund and most ultra-short duration funds do not charge mutual fund exit load.
- Axis Bluechip Fund.
- ICICI Prudential Bluechip Fund.
- Aditya Birla Sun Life Frontline Equity Fund.
- Kotak Standard Multicap Fund.
- SBI Bluechip Fund.
- HDFC Small Cap Fund.
- Franklin India Smaller Companies Fund.
- DSP Small Cap Fund.
Exit loads on different types of mutual funds
Mutual fund charges exit load on various equity, hybrid and debt funds. However, certain types of debt funds, like overnight fund and most ultra-short duration funds do not charge mutual fund exit load.
Exit Loads on Various Types of Mutual Funds
Debt funds may or may not have an exit load. However, one can ignore the expense by adjusting the investment tenure with the time period for which the fund charges an exit load. Same with equity funds. It varies but is usually around 1% if redeemed within the first 12 months.
Liquid funds are debt funds that invest in fixed-income securities such as certificates of deposit, treasury bills, commercial papers, and other debt securities that mature within 91 days. Liquid funds do not come with a lock-in period.
Unlike other mutual fund companies, Vanguard is owned by the funds themselves, which helps its management focus better on shareholder interests. Among other advantages, it claims to offer low-cost, no-load funds. This means the fund does not charge investors when fund shares are bought or sold.
No-load mutual fund
A fund that charges no sales fees either on the front end (when you buy fund shares) or back end (when you sell fund shares).
The exit load is a percentage applied to the NAV (net asset value), and the reduction in the amount is credited back to the investor. For example, a mutual fund defines its exit load to be 1% on redemption within a year.
| Fund Name | 3-year Return (%)* | 5-year Return (%)* |
|---|---|---|
| Aditya Birla Sun Life Digital India Fund Direct-Growth | 35.36% | 21.79% |
| Nippon India Small Cap Fund Direct- Growth | 47.76% | 21.70% |
| Quant Flexi Cap Fund Direct-Growth | 39.63% | 21.60% |
| ICICI Prudential Technology Direct Plan-Growth | 37.77% | 21.33% |
In the case of a Mutual Fund company shutting down, either the trustees of the fund have to approach SEBI for approval to close or SEBI by itself can direct a fund to shut. In such cases, all investors are returned their funds based on the last available net asset value, before winding up.
Should I exit mutual funds now?
Exit it only if it continues to underperform for another year. Investors must avoid sector and thematic funds as they are highly volatile. They can give high returns for a year or two and underperform for many consecutive years.
The exit load on liquid funds is regulated by the SEBI (Securities & Exchange Board of India) guidelines, wherein the liquid funds can charge exit load in a graded manner staggered over 7 days period, as given below. There is no exit load applicability if the units are held for 7 days or more in a liquid fund.
Can I withdraw from a mutual fund anytime? You can withdraw from your mutual fund holdings at any time as long as it is an open-ended fund. Mutual fund investments can be withdrawn as soon as the fund is available for daily sale and repurchase.
Theoretically, any investment can reduce to zero. So, if you have invested in stocks and one company goes bust, then the value of your investment in those stocks becomes zero.
| Scheme Name | Expense Ratio | 5Y Return (Annualized) |
|---|---|---|
| Motilal Oswal Midcap Fund | 0.75% | 19.35% p.a. |
| SBI Magnum Midcap Fund | 0.97% | 19.0% p.a. |
| Mahindra Manulife Multi Cap Fund | 0.48% | 18.85% p.a. |
| SBI Contra Fund | 0.89% | 18.73% p.a. |
The minimum holding time requirement applicable to mutual funds is one day. This is because the fund determines the applicable purchase price of the fund's units/shares on a daily basis. The price depends on the Net Asset Value (NAV) of the fund as of the purchase date.
| STSEX | Blackrock Exchange Portfolio | $1,836.46 |
|---|---|---|
| PRDGX | T. Rowe Price Dividend Growth Fund | $66.00 |
| VWESX | Vanguard Long-Term Investment-Grade Fund | $7.93 |
Vanguard is the king of low-cost investing, making it ideal for buy-and-hold investors and retirement savers. But beginner investors and active traders will find the broker falls short despite its $0 stock trading commission, due to the lack of a strong trading platform and accessible educational resources.
- Vanguard Total World Stock Index Fund (VTWAX)
- Fidelity Zero International Index Fund (FZILX)
- Schwab S&P 500 Index Fund (SWPPX)
- T. Rowe Price Growth Stock Fund (PRGFX)
- Vanguard Value Index Fund (VVIAX)
- Higher expense ratios: Since no-load funds don't charge a sales fee, they may have slightly higher expense ratios than load funds to cover the costs of running the fund. ...
- No advice or guidance: ...
- Redemption fees: ...
- Limited investment options:
What is a disadvantage of buying a no load fund?
The main disadvantage of a no-load fund is the lack of professional advice and guidance. You are responsible for processing the transaction, including analyzing and comparing the available options.
No-load funds are often sold through an investment company, rather than through a third-party sales firm. However, some companies, such as banks or broker-dealers, may charge their own fees for handling the transactions of third-party mutual funds. Most people recommend trying to avoid load funds altogether.
In general, to comply with the rule, an investment company with a name that suggests that the company focuses on a particular type of investment will either have to adopt a fundamental policy to invest at least 80% of its assets in the type of investment suggested by its name or adopt a policy of notifying its ...
At the time of payout, an exit load will be charged since you have made a withdrawal within 365 days of the date of investment. Exit load = 1 per cent of (2,000 units x Rs 25 per unit) = Rs 500. Amount received upon redemption = Value of units redeemed - Exit load. i.e., (2000 units x Rs 25 per unit) - Rs 500.
Therefore, the client would have received 1000 units for their investment. The client decides to redeem 1000 units of the mutual fund when the NAV is ₹60. The exit load of 1% will be deducted from the latest NAV, i.e. ₹60. The calculation will be as follows: (1% of ₹60) * 1000 units = ₹600.
The exit load of the fund is 0.1% till 30 days from the date of allotment and is nil after that. HDFC Index Nifty 50 Fund is an index fund benchmarked against the Nifty 50. The fund was launched in July 2002. Exit Load of 0.25% is applicable if redemption is within three days from the date of allotment.
Exit load is a fee or an amount charged from an investor by AMC for exiting or leaving a scheme or the company as an investor. Exit loads applicable on different fund categories are: Equity funds - generally 1% to 2% Debt funds - generally 0.5% to 2%
Key Takeaways. Load funds are mutual funds that charge a sales fee or commission. No-load funds usually do not charge any sales fee or commission, as long as you keep your money invested for a specified period, often five years.
Ideally, you should stay invested in equity index funds for the long run, i.e., at least 7 years. That is because investing in any equity instrument for the short-term is fraught with risks. And as we saw, the chances of getting positive returns improve when you give time to your investments.
While there are few certainties in the financial world, there's virtually no chance that an index fund will ever lose all of its value. One reason for this is that most index funds are highly diversified.
Do index funds double every 7 years?
According to Standard and Poor's, the average annualized return of the S&P index, which later became the S&P 500, from 1926 to 2020 was 10%. At 10%, you could double your initial investment every seven years (72 divided by 10).
Arbitrage funds are likely to generate comparatively better returns than liquid funds.
Flexible holding period: An investor in a liquid fund can hold his or her investment for as long as necessary. Though a small exit load is charged for redemption within seven days, liquid funds have flexible holding periods.
| Fund Name | 3-year Return (%)* | 5-year Return (%)* |
|---|---|---|
| Aditya Birla Sun Life Digital India Fund Direct-Growth | 35.36% | 21.79% |
| Nippon India Small Cap Fund Direct- Growth | 47.76% | 21.70% |
| Quant Flexi Cap Fund Direct-Growth | 39.63% | 21.60% |
| ICICI Prudential Technology Direct Plan-Growth | 37.77% | 21.33% |
What is an Exit Load. An exit load refers to the fee that the Asset Management Companies (AMCs) charge investors at the time of exiting or redeeming their fund units. It is also referred to as the commission to fund houses or exit penalty if an investor exits the fund in the lock-in period.
Yes, you can redeem your mutual fund investments any time you want.
No-load mutual funds have no or low fees while load funds have a sales charge or commission attached. You can purchase no-load funds directly from the company or through a brokerage firm but load funds are sold through an adviser.
Understanding a No-Load Fund
Because there is no transaction cost to purchase a no-load fund, all of the money invested is working for the investor. For example, if an investor purchases $10,000 worth of a no-load mutual fund, all $10,000 will be invested into the fund.
You should generally buy no-load funds if you don't use an advisor, but perhaps the most important reason for buying no-loads is to boost your returns by minimizing expenses. In most cases, no-load funds have lower average expense ratios than load funds, and lower expenses generally translate into higher returns.
