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List of Mutual Funds with No Exit Load

17 March 2022

Exit load is a fee charged when you redeem your investments from a mutual fund. Mutual fund houses charge an exit load on certain mutual funds if you redeem before a stipulated period. For most mutual funds, exit load is charged only for a specified duration after which there is no exit load.

Exit load is charged by fund houses to discourage investors from hopping in and out of schemes. Different mutual fund schemes have different periods in which they levy exit loads.

But many mutual fund schemes do not charge any exit load, especially the debt mutual funds. Let us look into some of the debt funds without any exit load.

Criteria:  We have picked top five funds from equity and debt fund categories each, which have the lowest exit load.

Disclaimer: This is not an exhaustive list of mutual funds with zero exit load. There might be other mutual funds that may also have minimal to zero exit load from debt fund or equity fund categories. This is also not a recommendation that exit load should be a criteria before picking mutual funds for investment. The blog is only for informative purposes.

Top  Funds with No Exit Load

Whenever you decide to sell the units of mutual funds you own, an exit load may or may not be charged to you.

Here is the list of mutual funds with zero exit load..

Debt Funds

Debt funds with zero exit load
Aditya Birla Sun Life Liquid Fund
Axis Liquid Fund
Baroda BNP Paribas Liquid Fund
Edelweiss Liquid Fund
ICICI Prudential Liquid Fund
Source: Value Research
As on 16th March 2022

 

Liquid funds is the most popular category as debt funds with zero exit load. Here’s a list of liquid funds with least exit load: 

The exit load for this fund is 0.0070% if redeemed within 1 day, 0.0065% if redeemed within 2 days, 0.0060% if redeemed within 3 days, 0.0055% if redeemed within 4 days, 0.0050% if redeemed within 5 days, 0.0045% if redeemed within 6 days.The fund was launched in January 2013. The benchmark index of the fund is Crisil Liquid Fund Index.

The exit load for this fund is 0.0070% if redeemed within 1 day, 0.0065% if redeemed within 2 days, 0.0060% if redeemed within 3 days, 0.0055% if redeemed within 4 days, 0.0050% if redeemed within 5 days, 0.0045% if redeemed within 6 days. It is nil after that. The fund was launched in October 2009. The benchmark of the fund is Nifty Liquid Index

The exit load for this fund is 0.0070% if redeemed within 1 day, 0.0065% if redeemed within 2 days, 0.0060% if redeemed within 3 days, 0.0055% if redeemed within 4 days, 0.0050% if redeemed within 5 days, 0.0045% if redeemed within 6 days. It is nil after that. It was launched in Feb 2009.

It is a scheme which  invests in very short maturity (1-3 months) debt instruments providing returns, safety, and liquidity. The exit load for this fund is 0.0070% if redeemed within 1 day, 0.0065% if redeemed within 2 days, 0.0060% if redeemed within 3 days, 0.0055% if redeemed within 4 days, 0.0050% if redeemed within 5 days, 0.0045% if redeemed within 6 days. It is nil after that.

It was launch din November, 2005. The exit load for this fund is 0.0070% if redeemed within 1 day, 0.0065% if redeemed within 2 days, 0.0060% if redeemed within 3 days, 0.0055% if redeemed within 4 days, 0.0050% if redeemed within 5 days, 0.0045% if redeemed within 6 days. It is nil after that.

 

Equity Funds

Equity mutual funds with no exit load
SBI Large & Midcap Fund
HDFC Index Nifty 50 Fund
HDFC Index Sensex Fund
Tata Banking & Financial Services Fund
Tata Infrastructure Fund
Source: Value Research
As on March 16, 2022

 

SBI Large & Midcap Fund

SBI Large & Mid Cap Fund aims to provide investors with opportunities for long term capital appreciation by investing in diversified portfolio comprising predominantly large cap and mid cap companies.

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 Fund

HDFC Index Nifty 50 Fund is an index fund benchmarked against 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 nil after that.

HDFC Index Sensex Fund

Its is an an open-ended scheme replicating/tracking S&P BSE SENSEX Index.The exit load of the fund is 0.25% till 3 days from the date of allotment and is nil after that.

Tata Banking & Financial Services Fund

The investment objective of the scheme is to seek long term capital appreciation by investing at least 80% of its net assets in equity/equity related instruments of companies in the banking and financial services sector in India. The exit load of the fund is 0.25% till 30 days from the date of allotment and is nil after that.

Tata Infrastructure Fund

This is a fund that invests mainly in shares of companies engaged in infrastructure-related activities or are expected to benefit from them.. The exit load of the fund is 0.25% till 30 days from the date of allotment and is nil after that.

 

Final Words

Exit load is charged to compensate for your early withdrawal from the fund. The exit load on debt funds and equity funds should not be a criteria for decision making.

A mutual fund expects you to stay invested for a long duration. If too many people redeem their money from mutual funds, the mutual fund manager’s decision making is affected as the instability is too high.

Not only that, but the investment of other investors also get affected. Therefore, it is in the interest of the mutual fund and long-term investors to discourage people from redeeming too soon. The exit load is meant to act as a discouragement to people who wish to withdraw their money from a mutual fund.

The exit load is mostly higher for a short duration and lower for a longer-term. In most cases, after a certain period, there is no exit load applicable.

When investing, there are various factors besides the exit load you must consider. Exit load isn’t one of the primary factors to consider. However, if you don’t wish to pay for an exit load on a debt mutual fund, you can pick a fund from above mentioned 10 debt funds.

But remember, avoiding exit load mutual funds will prevent you from choosing good funds.

Mutual funds do an excellent job of handling and guiding your investments. If you want to invest in mutual funds for the short-term, you should invest in debt mutual funds. These mutual funds have lower returns as compared to equity mutual funds, but they are also less risky.

Happy Investing!

Read more on Groww: https://groww.in/blog/10-debt-funds-with-no-exit-load/

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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