MFs raise exit load to check outflows from equity funds

MUMBAI: Mutual funds are trying to minimise the outflows from their equity funds in the current difficult market scenario by increasing the exit loads on their SIP plans.

In equity funds, typically, 80-85 per cent of the corpus is contributed by retail investors, point out sources in the mutual fund industry.

As part of this strategy, Canara Robeco Mutual Fund has increased the exit load on its SIPs to 2 per cent from 1 per cent earlier, for redemption requests made within one year of investments, for its equity schemes like Canara Robeco Infrastructure Fund.

In a similar move, ICICI Prudential Mutual Fund has imposed a uniform 1 per cent exit load for redemption made within a year for SIPs, for its equity-scheme ICICI Prudential Banking and Financial Services Fund.

This fund house earlier charged an exit load of 1 per cent for SIPs withdrawals made between 0 and 180 days of investment in the ICICI Prudential Banking and Financial Services Fund, while it charged 0.5 per cent for SIP withdrawals between 181 and 365 days of investment in this scheme.