1 min read.Updated: 05 Jun 2021, 11:24 AM ISTNeil Borate
SBI Mutual Fund has reduced the exit load period from 1 years to 30 days for them and the exit load percentage from 1% to 0.5%. The fund house also cut the exit load on SBI Nifty Next 50 Index Fund from 1% to 0.25% and reduced the exit load period from 1 year to 30 days
MUMBAI: In a notice issued today, SBI Mutual Fund announced that it is reducing the exit load period and exit load percentage on several thematic funds investing in cyclical sectors from 7 June 2021. The sectors tracked by the funds have rallied strongly over the past year. Investors pay exit load if they redeem their investments from a fund before the expiry of the holding period. Investment through SIPs and other similar investing plans in such schemes will also benefit from the exit load reduction on future instalments, the notice said.
The schemes include SBI Banking and Financial Services Fund, SBI Infrastructure Fund, SBI PSU Fund, and SBI Magnum COMMA Fund (which is focused on commodities). SBI Mutual Fund has reduced the exit load period from 1 years to 30 days for them and the exit load percentage from 1% to 0.5%. The fund house also cut the exit load on SBI Nifty Next 50 Index Fund from 1% to 0.25% and reduced the exit load period from 1 to 30 days.
“The move is aimed at attracting tactical investors into these schemes. The banking sector has rallied strongly over the past few weeks. Commodity stocks have led the market over the past year. Several other AMCs already have very short periods for exit loads in their corresponding schemes," said Amol Joshi, founder, Plan Rupee Investment Services. SBI Magnum COMMA Fund is up 95.12% over the past year compared to 66% for the S&P BSE 500 Total Returns Index (TRI). SBI Banking and Financial Services Fund and SBI Infrastructure Funds are up 69.99% and 66.56% respectively, showed data from Value Research as of 4 June.