InvestorQ : Any changes in the exit load of the mutual funds as per the Budget2020 gave by the finance minister?
Sam Eswaran made post

Any changes in the exit load of the mutual funds as per the Budget2020 gave by the finance minister?

Answer
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Sam Eswaran answered.
7 months ago


No changes have been announced in the budget2020 regarding exit load on mutual funds. However, the graded exit load for liquid funds has been notified by the SEBI in October 2019. The graded system was such that the funds with higher maturity and risk shall be charged more exit load, this is applicable on liquid funds only.

The new exit load structure is as follows:
Redemption on day 1: 0.0070%
Redemption on day 2: 0.0065%
Redemption on day 3: 0.0060%
Redemption on day 4: 0.0055%
Redemption on day 5: 0.0050%
Redemption on day 6: 0.0045%
Redemption on day 7: 0.0000%

This means that redemption of the liquid funds after 7 days would not involve any exit load. However, not all mutual fund companies charge any exit load, and those who do will have to charge as per new guidelines.