With the market scaling new peaks and investors desperate to cash out on the rally, fund houses have increased the exit load on various schemes to discourage redemption. UTI Mutual has announced an exit load of 1 per cent for redemption of investment in UTI Mid Cap, Banking Sector Fund and Infrastructure Fund within 548 days. Withdrawals made within one year from the allotment date were only charged exit load until recently. Similarly, should you withdraw investment made in Birla Sun Life Dynamic Bond Fund within 270 days from the date of allotment, you will have to part with 0.5 per cent of your proceeds. Earlier, exit load was chargeable only on redemptions made within 180 days from the allotment date.
Likewise, if you wish to withdraw investment in Tata Balanced, Mid Cap Growth and Equity P/E within 540 days from the date of allotment, you will have to forego 1 per cent of your investment proceeds.
Assets swell
The total assets managed by the Indian mutual fund industry rose by over 9 per cent to Rs. 9.93 lakh crore during April-June this year, compared with the January-March 2014 period. The sharp rally in equities driven by a positive election outcome and change in investor sentiment aided the big jump in mutual fund assets. HDFC Mutual Fund maintained its numero uno position with average assets of about Rs. 1.3 lakh crore, 15 per cent higher than in the January-March period. ICICI Prudential Mutual (Rs. 1.18 lakh crore) and Reliance Mutual Fund (Rs.1.14 lakh crore) closely followed HDFC Mutual Fund.
A new one from SBI
SBI Mutual Fund has filed the draft prospectus for its close-ended diversified equity fund — SBI Opportunities Fund. Investment in the fund cannot be redeemed for three years, at the end of which investors will have to cash out at the applicable NAV. But if you need funds to meet some exigency, you can sell them through the BSE where the units are proposed to be listed.
The fund will be managed by Sohini Adnani and the performance will be benchmarked to the S&P BSE 500 Index.
This article was originally published in >The Hindu Business Line .
