Fund houses revise exit loads on equities
16 Oct 2012 11:50 PM GMT
Looking to discourage investors from quick sell-offs, fund houses have begun revising upwards their exit loads, or fees charged for sale of mutual fund schemes.The move follows a strong rally in the stock markets, which has led to many retail investors cashing out from equity mutual fund schemes. The net outflow in September rose to a two-year high of Rs 3,559 crore from these funds.
As a result, a number of asset management companies, including ICICI Prudential MF, JP Morgan MF and Axis MF have started revamping their exit loads.Other fund houses are also likely to follow suit soon as it is necessary for them to encourage investors for staying put with their invested funds for a longer period of time, industry experts said. JPMorgan MF has announced a revision of exit loads for at least five schemes. Under the new structure, an exit load of three per cent will be charged if units are redeemed or switched out within six months from the date of allotment.
As a result, a number of asset management companies, including ICICI Prudential MF, JP Morgan MF and Axis MF have started revamping their exit loads.Other fund houses are also likely to follow suit soon as it is necessary for them to encourage investors for staying put with their invested funds for a longer period of time, industry experts said. JPMorgan MF has announced a revision of exit loads for at least five schemes. Under the new structure, an exit load of three per cent will be charged if units are redeemed or switched out within six months from the date of allotment.
Next Story
