Pay exit load in liquid funds. Read to know more

From next week onwards, you have to pay exit loads in liquid funds.

The Securities and Exchange Board of India (SEBI) has accepted the recommendations prepared by the Association of Mutual Funds of India (AMFI) for graded exit load for redemptions in liquid funds within 7 days of investment.

This move is aimed at deterring big corporates from using liquid funds to park their idle money for very short periods. Such big purchases / redemption can amplify the risk for retail investors, especially in times of tight liquidity in the debt market.

The graded exit load will be as follows

Day of Exit	Exit load as % of redemption amount
Day 1	0.007%
Day 2	0.0065%
Day 3	0.006%
Day 4	0.0055%
Day 5	0.005%
Day 6	0.0045%
Day 7	nil

It means you need to be invested in any liquid fund for min 7 days from date of investment. On the 7th day only you have allowed withdrawing without any exit load.

This change will be effective from 21^st October 2019.

Along with the above changes, SEBI also did the changes to Cut-Off Timing for Liquid Funds. New cut-off time is 1.30 PM. It means, if you invest before this cut-off timing, then you are eligible for the same day NAV. Otherwise, the next day NAV will be considered for your investment.

About Us

We are a neo advisory firm that believes in Goal based investment. We offer advisory services in Mutual Funds and retirement/ Life insurance domain. For any clarification / investment needs call us on +91 9325295502.

We are now on Instagram. Visit us on www.instagram.com/growwealthadvisors