Exit load is a fee charged when you redeem all your investments from a mutual fund. All mutual fund houses charge an exit load on mutual fund if you redeem before a decided period. An exit load is charged only for a specified duration only after which there is no certain exit load.
Exit load is charged by fund houses to ‘discourage’ investors from hopping in-out of schemes. Different mutual fund schemes have different time-periods in which they levy exit loads.
But many mutual fund schemes do not charge any exit load, especially the ‘debt mutual funds’.
Let’s take a look into some of the debt funds without any exit load, here:
- Indiabulls Liquid Fund: This scheme was launched on 1st January 2013. This fund comes with low risk & has given a return of 8.29% (since it’s launch). The liquid cash can be easily converted into cash within a 1 or 2 working days. They invest in instruments with a maturity period of upto 91 days. Amongst all debt funds, liquid funds provide better stable returns.
- HDFC Short-Term Debt Fund: This short-term debt fund was launched on 1st January 2013. This fund comes with low-risk & given a return of 8.68%. If you are looking to invest for a short time period, like 3 months or more, this is one of the better debt funds for investment. Also, it maintains a conservative portfolio, both on duration and credit quality.
- Franklin India Ultra-Short Bond Fund: This is an ultra short bond which was launched on 1st January 2013 with a low-risk and also giving a return of 9.53% since it’s launch.
- Aditya Birla Sun Life Short Term Fund: This fund is the short-term debt which was launched on 1st January 2013 with low-risk, thus, giving returns of 8.88%. It relies more on corporate debt fund as compared to sovereign debt.
- Essel Liquid Fund: This liquid fund was launched on 1st January 2013 with returns for 1 year (6.96%), 3 years (7.57%), and 5 years (8.29%).
- Indiabulls Ultra Short Term Fund: This fund is ultra short bond fund which was launched on 1st January 2013 with low risk, also giving the return of 8.96%. The overall returns in this category are same to the returns offered by short term funds.
Apart from above, make sure to avoid exit load mutual funds; this will prevent you from picking good funds.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.