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SBI Mutual Fund Revises Exit Load Structure for Long Duration Fund

Author Published on: December 19, 2024 at 2:43 PM UTC
SBI Mutual Fund revises exit load structure for SBI Long Duration Fund to NIL, effective Dec 19, 2024, removing 0.25% charge for redemptions within 90 days.
SBI Mutual Fund Revises Exit Load Structure for Long Duration Fund
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SBI Mutual Fund has announced a major update to the exit load structure of its SBI Long Duration Fund, with the revised terms coming into effect on December 19, 2024. This update aims to provide a more straightforward and flexible redemption process for prospective investors in the scheme.

What Has Changed?

The revised structure eliminates the exit load entirely. Previously, the exit load was 0.25% for redemptions made within 90 days from the date of allotment. With the revised terms, investors can now redeem units at NIL exit load, irrespective of the holding period.

Scheme Name Existing Exit Load Revised Exit Load
SBI Long Duration Fund 0.25% for exits within 90 days; NIL for exits after 90 days NIL

This change will apply to all investments made in the fund starting from December 19, 2024.

SBI Long Duration Fund

The SBI Long Duration Fund is a debt mutual fund designed to invest in instruments with a longer maturity period. Its objective is to offer relatively stable returns over extended time horizons.

Implications for Investors

While the fund’s objectives and strategies remain unchanged, the removal of the exit load could provide investors with more flexibility. With no penalty for early withdrawals, the fund may appeal to those seeking liquidity without additional charges.

It’s worth noting that the exit load structure is an important consideration for mutual fund investors, as it impacts the overall returns based on the timing of redemption.

Conclusion

SBI Mutual Fund’s revision of the exit load structure for its Long Duration Fund will help streamline the investor experience. The elimination of the 0.25% exit load for redemptions within 90 days will take effect on December 19, 2024. Investors are advised to review the updated terms and assess their investment goals accordingly.

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.

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