whether exit load is appliable or not

POSTED BY bharat shah ON July 15, 2012 2:16 pm COMMENTS (7)

whether exit load is applicable or not for the following redeem transaction in equity mf:

date of purchase :13-08-2009

date of redeem : 09-07-2012

exit load applicable w.e.f. 01-08-2009 – for less than 3 years holding 1% for more than 3 yrs holding nill

exit load applicable w.e.f. 16-07-2010- for less than 1 year holding 1% for more than 1 yr. holding nill

7 replies on this article “whether exit load is appliable or not”

  1. bharat shah says:

    updating the matter I am happy to let you know that icicipru amc returned deducted exit load of rs.474/- through cheque after representing to them and sebi.

  2. bharat shah says:

    just for information(my previous assumption was wrong)

    Currently, the first 1 per cent of exit load goes to the fund company and anything over that goes into the fund.(from VRO article).

  3. bharat shah says:

    thank you , ramesh.. but what about the exit load stated on subsequent statement of account , which states new exit load. is it not misleading? moreover my take is the rules are not always legal. if i am not mistaking , this exit load is going to the fund’s aum, and indirectly benefiting other investors. here the newer investor, who just completed one year would be benefited v/s old investor who invested for more than 2 years. this is the anomaly due to rule, as i think..and should do away by the authority concerned. you may be knowing that while revising pay scales in the companies and government , anomalies arises because of pay scale revision rules, but they are to be set right by the authorities. one more query pops in my mind: in case i would have other investment in the same fund(redeem value more than 47000/-), which completed one year., then what would they have redeem for my rs.47000/-?

    1. Ramesh says:

      Depends on the date of investment made, again.

      The new exit load will be applicable for new investments.

      I do not think it is an anomaly.

  4. bharat shah says:

    @ashal

    in my case icicipru dynamic deducted exit load and on complaining they attached addendum for earlier exit load i.e. 1% applicable for less than 3 yrs. holding. surprisingly in all my statement of accounts even downloaded from my online account with them are showing new provision i.e. applicable only upto 1 yr. holding. when i wrote back, they only repeated their earlier reply. i wonder , even if such provision to apply exit load provision applicable at time of investment , and if such provision is unfavorable to the (old) investor, is legitimate, as it creates anomaly. any way i take up to the regulator , if required. but meantime ,members may be careful.

    1. Ramesh says:

      Exit load applies on the basis of date of investment.

      Not on any subsequent changes, whether that is beneficial to the investor or not.

  5. Dear Bharat, the exit load is not applicable in this case.

    Thanks

    Ashal

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