As market competition grows, mutual funds cut costs to woo investors

Tata, SBI announce sharp reductions in exit loads; Jio BlackRock sets it to zero

The competitive intensity in the mutual fund (MF) industry is moving beyond scheme performance, cost structures, and distribution. In recent months, several fund houses have rationalised exit loads applicable on redemptions.

 

In August, Tata MF introduced a uniform exit load of 0.5 per cent across its equity and hybrid schemes, applicable on redemptions within 30 days of investment. This marked a sharp reduction from the earlier structure, where most active schemes imposed a 1 per cent exit load on redemptions within one year.

 

SBI MF followed with similar cuts in exit loads in September. The exit loads, which previously stood