Revised Exit Load Structure For Mirae Asset Hybrid Schemes

Mirae Asset Mutual Fund has announced a revision in the exit load structure for select hybrid schemes, effective January 1, 2025. The changes impact three schemes: Mirae Asset Balanced Advantage Fund, Mirae Asset Multi Asset Allocation Fund, and Mirae Asset Equity Savings Fund. Here’s a look at the updates:

Mirae Asset Balanced Advantage Fund

The exit load for this scheme will now apply to units redeemed within 180 days if the redemption exceeds 15% of the investment. Previously, the exit load period was 365 days. The exit load charge remains at 1% for such redemptions.

Mirae Asset Multi Asset Allocation Fund

Similarly, the Mirae Asset Multi Asset Allocation Fund will follow the revised 180-day exit load structure. Investors redeeming units exceeding 15% of their investment within this period will incur an exit load of 1%, aligning with the updated rules.

Mirae Asset Equity Savings Fund

For the Mirae Asset Equity Savings Fund, the exit load has been adjusted to apply to redemptions exceeding 15% of the investment within 90 days, down from the previous 365-day timeline. The 1% exit load remains unchanged.

Implications of the Revised Exit Load Structure

These changes shorten the holding period thresholds for exit load applicability, potentially influencing investors’ redemption strategies. By revising these rules, Mirae Asset aims to adjust the redemption timeline while maintaining consistency in the exit load charges across its hybrid offerings.

Understanding Hybrid Funds

Hybrid funds combine asset classes such as equity, debt, and sometimes other instruments like commodities or real estate. This approach aims to balance risk and reward by offering the growth potential of equities alongside the stability of debt instruments.

Investors holding units of these hybrid schemes beyond the revised timelines will not be subject to exit load charges, provided redemptions remain within the 15% limit. These updates are scheduled to take effect on January 1, 2025, and investors are advised to review the terms for better clarity.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.