Business Standard: Mutual fund exit loads, India remains a good bet
“In the case of equity funds, exit load is a desirable load since it acts as a deterrent to investors from treating the fund as a short term investment vehicle which may be detrimental to long term investors”. Funds would typically slash it because they face market pressure,” said Dhirendra Kumar, CEO of Value Research Online that tracks the mutual fund industry.
I’m sorry, but there is nothing ‘desirable’ about a 0.5-2% cut from my investment funds.
The past few months have stripped the sheen off a number of hot favourite sectors on the bourses like automobiles, capital goods, cement, commodities, information technology and the likes, which have a relatively higher sensitivity to changes in interest and exchange rates compared to other sectors.
On the other hand, sectors like banking and financial services, construction, consumer goods, media, power, real estate and telecommunications are largely driven by surging domestic demand, rising disposable incomes, low penetration and scarcity of supply within the country.
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