Hi Sree,
Firstly, Congratulations on having completed 3 years!! I wanted to know that I have a lump sum investment of around 20 lacs in HDFC Corporate debt fund. I bought this MF in Feb 2017. I want to start an STP from this fund into HDFC balanced MF. Can I do that without the concern of exit loads.How much would be the exit loads for this scenario and is it advisable? This fund has an exit load till 3 years. Please advice.
Thanks,
Sachin
2 Answers
Dear Sachin,
Thanks for the wishes!
STPs are treated as normal redemptions only. So, Exit load & Taxation rules are applicable accordingly.
For the mentioned fund, exit load rules are ;
For units in excess of 15% of the investment,2% will be charged for redemption within 365 days
For units in excess of 15% of the investment,1% will be charged for redemption between 366 - 720 days
For units in excess of 15% of the investment,0.5% will be charged for redemption between 721 - 1080 days Kindly read : https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
For units in excess of 15% of the investment,1% will be charged for redemption between 366 - 720 days
For units in excess of 15% of the investment,0.5% will be charged for redemption between 721 - 1080 days Kindly read : https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
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