SBI Dynamic Bond fund – Dividend option

POSTED BY Karthik ON March 6, 2013 10:55 am COMMENTS (10)

I had some holdings of SBI Dynamic Bond fund Direct Plan – Dividend.

I had chosen Dividend option instead of Growth option since Tax will deducted as DDT and I don’t have to worry about.

But, since this year’s budget doubled the DDT on debt funds, I thought I will switch to Growth option (though I have to pay the 1% exit load).

But to my surprise, there was no exit load deducted when I did the switch. Not sure if Direct plans are exempt from Exit loads ?!

(For HDFC Short term Opportunities fund also I was not seeing any exit load deducted when I redeemed before 3 months http://localhost/jagoforum2/exit-load-for-direct-plans/6734/ )

10 replies on this article “SBI Dynamic Bond fund – Dividend option”

  1. Ashal Jauhari says:
    March 21, 2013 at 11:34 pm

    Dear Karthik, thanks for the update & sharing.

    Thanks

    Ashal

    Reply
  2. Karthik says:
    March 21, 2013 at 8:25 pm

    sorry the correct UTIMF link is
    http://www.utimf.com/Funds/AllAddendums/391213-%20IntroductionofDirectPlanModifications.pdf

    Reply
  3. Karthik says:
    March 21, 2013 at 8:20 pm

    This is now clarified by the below documents

    http://www.utimf.com/Funds/AllAddendums/40-12-13-EBF-Schemes-Revision-in-Computation-of-NAV.pdf

    http://www.hdfcfund.com/CMT/Upload/ArticleAttachments/434%20Addendum%20-%20Modification%20in%20exit%20load%20provisions%20-%20Direct%20Plan%20dated%20January%208,2013.pdf

    Reply
  4. Ashal Jauhari says:
    March 10, 2013 at 10:22 am

    Dear Karthik, that’s logical answer from my side. Let you come up with your experience from UTI MF.

    Thanks

    Ashal

    Reply
    1. Karthik says:
      March 12, 2013 at 8:29 am

      exit load was deducted when I redeemed yesterday from UTIMF (registrar – Karvy)

      Reply
  5. Ashal Jauhari says:
    March 10, 2013 at 10:10 am

    Dear Bunker Guide, thanks for the update. Now I can understand this Exit Load thing. In regular plans, the exit load is applied to recover the upfront commission paid to the distributors to bring the money into the fund. In case of direct plans, as no upfront commission was paid, hence no exit load is there.

    Thanks

    Ashal

    Reply
    1. Karthik says:
      March 10, 2013 at 10:20 am

      so, that will be the reason there was no exit load in my HDFC and SBIMF redemptions ?!
      Let me try redeeming in UTIMF tomorrow..

      Reply
  6. Bunker Guide says:
    March 10, 2013 at 9:57 am

    I checked on valueresearchonline website for SBI Dynamic Bond-D and SBI Dynamic Bond Direct-D in the Fund Details tab.

    The direct option does not show any Exit load, while the regular option shows 1% if redeemed within 365 days.

    Reply
  7. Ashal Jauhari says:
    March 6, 2013 at 3:09 pm

    Dear Karthik, as per fund fact sheet, exit load is applicable but it seems, SBI MF people or RTA has made a mistake.

    Thanks

    Ashal

    Reply
    1. Karthik says:
      March 6, 2013 at 3:30 pm

      yes, but the same happened in HDFC also… could be a problem with CAMS..
      Anyhow I am happy that the exit load is saved.

      Reply

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