List Of Mutual Funds with No Exit Load

Investing in mutual funds is a great way to build long-term wealth, but understanding the costs involved is equally important. An example of such a charge is the exit load—a fee applied if you withdraw your mutual fund investment within a predefined timeframe. For investors who value flexibility and want to avoid penalties, mutual funds without exit loads or those with low exit loads can be highly attractive.

In this article, we will cover what an exit load is, introduce some of the top zero-exit-load mutual funds in equity and debt categories, and help you decide whether these funds align with your financial goals.

Exit Load in Mutual Funds - Meaning

An exit load is a fee charged by mutual fund companies when an investor exits (redeems) the scheme within a pre-defined period, typically ranging from a few days to a year. It’s meant to discourage premature withdrawals and protect long-term investors from the impact of sudden redemptions.

For instance, if a mutual fund charges a 1% exit load for withdrawals made within 12 months, redeeming ₹1,00,000 worth of units after 6 months would incur a ₹1,000 fee.

Nowadays, many zero or low exit mutual funds allow investors to withdraw their money without any penalties, providing greater ease and flexibility.

Top-Performing Mutual Funds with Minimal or No Exit Load

We’ve categorised some of the top mutual funds with zero or low exit loads across equity and debt schemes. The fund data includes AUM (Assets Under Management), NAV (Net Asset Value), and past returns (as of May 2025).

Low or Zero Exit Load Equity Mutual Funds

While most equity funds have some form of exit load (usually 1% for exits before 1 year), the following funds have relatively flexible exit load structures, often waiving them off after a short duration or having no exit load at all:

HDFC Index Nifty 50 Fund:

This fund is a passively managed index scheme that tracks the Nifty 50, providing investors with an affordable way to access the broader market. A 0.25% exit fee applies if units are redeemed within three days of purchase; however, redemptions after this window are charge-free, making it a cost-effective choice for both short-term and long-term investment strategies.

SBI Large & Midcap Fund:

This fund seeks to achieve long-term capital appreciation by investing in a diversified mix of equities, focusing mainly on large-cap and mid-cap stocks. It provides a mix of stability from well-established firms and growth potential from mid-sized, fast-growing companies. The fund charges a small exit fee of 0.1% for redemptions made within 30 days, after which no exit load applies, offering investors greater flexibility.

Tata Banking & Financial Services Fund:

Focused on India’s financial ecosystem, this fund invests primarily in equity and related instruments of banking, insurance, NBFCs, and other financial services firms. Its sector-specific approach targets long-term capital growth. The fund imposes a 0.25% exit fee on withdrawals made within the first 30 days, but exits beyond this period are free of any charges.

Tata Infrastructure Fund:

This scheme targets growth opportunities by investing in companies involved in infrastructure development, such as power, transportation, and construction. It’s geared toward investors seeking to benefit from India’s growing infrastructure investments. The fund imposes a 0.25% exit fee on redemptions within 30 days, but has no charges for withdrawals after that period, allowing for medium-term holding flexibility.

HDFC Index Sensex Fund:

This budget-friendly index fund aims to track the S&P BSE Sensex, giving investors exposure to 30 leading Indian companies. It charges a 0.25% exit fee for redemptions made within three days of purchase, but no fees apply for withdrawals after that, making it an easy and cost-effective option for broad market investment.

Debt Mutual Funds Offering Low or Zero Exit Load

Liquid debt funds are preferred for their low volatility and quick liquidity. Most waive exit charges after seven days, making them ideal for short-term investments. Let's explore a few of them:

ICICI Prudential Liquid Fund:

One of the oldest liquid funds in India, launched in November 2005, this scheme offers reliable returns and liquidity backed by the ICICI brand. It implements a declining exit load that begins at 0.0070% if redeemed on the first day and reduces daily until 0.0045% on the sixth day, with no exit load applicable from the seventh day onwards. Investors widely prefer this fund for short-term parking of large funds.

Edelweiss Liquid Fund:

This scheme invests primarily in debt instruments with very short maturities, typically between 1 to 3 months, offering capital preservation and immediate liquidity. Following the industry-standard structure, it imposes a sliding exit load from 0.0070% (day one) down to 0.0045% (day six), and becomes exit-load-free from day seven. The fund is suited for individuals seeking a low-risk option to hold their excess cash for a short duration.

Axis Liquid Fund:

Introduced in October 2009, Axis Liquid Fund is tailored for investors looking for a low-risk investment avenue with quick access to funds. It tracks the Nifty Liquid Index and follows a tiered exit load structure, starting at 0.0070% on the first day, reducing to 0.0045% by the sixth day, and continuing to decline to zero from the seventh day onward. Its steady performance and liquidity make it suitable for an emergency corpus or short-term goals.

Baroda BNP Paribas Liquid Fund:

Since its launch in February 2009, this fund has focused on delivering steady returns through investments in high-quality debt instruments. It follows the typical liquid fund exit load framework: 0.0070% for day-one redemptions, gradually decreasing each day to 0.0045% on day six, with no exit fee from day seven. This fund is appropriate for investors needing efficient cash management solutions.

Aditya Birla Sun Life Liquid Fund:

Launched in January 2013, this liquid fund is ideal for short-term investors seeking capital safety, liquidity, and modest returns. It benchmarks against the CRISIL Liquid Fund Index. It follows a tiered exit load structure, beginning at 0.0070% on the first day and decreasing incrementally to 0.0045% by the sixth day. No exit load applies after six days, making it a flexible option for parking idle funds.

Disclaimer: The mutual fund schemes discussed here are for informational purposes only and shouldn't be taken as investment advice. Remember, past performance doesn't predict future returns. We strongly recommend consulting a certified financial advisor before making any investment choices. All investments come with market risks, and you could lose your principal.

Why Choose Mutual Funds with No Exit Load?

Investing in mutual funds with zero exit load offers several practical advantages, especially for investors seeking flexibility and cost-efficiency. Here are the standout benefits:

• Instant Access to Your Money: With no exit load involved, you can withdraw your investment whenever needed without worrying about losing a portion of your returns to exit charges.
  
• Easier Portfolio Adjustment: No-exit-load mutual funds allow you to make swift changes to your portfolio, whether it's reallocating between asset classes or shifting strategies, without the burden of additional costs.
  
• Improved Return Efficiency: By eliminating exit penalties, these funds help you retain more of your earnings. For investors who might not hold units for a full year, this can make a noticeable difference in overall returns compared to funds that levy exit charges.
  
• Perfect for Short-Term Investment Plans: These funds are ideal for short-term or tactical strategies where investment horizons are limited. Whether you're saving for an upcoming purchase or parking idle funds temporarily, they offer a cost-effective and flexible solution.

Choosing the Right Zero-Exit Load Mutual Fund

To make a smart choice when selecting a mutual fund that doesn’t charge an exit fee, consider the following steps:

1. Identify the Fund Type: For short-term financial needs, liquid or ultra-short-duration debt funds are often the most suitable due to their stability and quick redemption options.
   
2. Evaluate Past Performance: While returns aren’t guaranteed, analysing historical data can help assess consistency and fund management quality.
   
3. Look at the Expense Ratio: A lower management fee means a larger share of the returns stays with you, which is especially important in low-return environments.
   
4. Match Your Risk Tolerance: Choose a fund that fits your comfort level with risk, whether conservative, moderate, or aggressive.

Example:

If you're a cautious investor building an emergency fund. A scheme like ICICI Prudential Liquid Fund might be a good fit as it offers both low volatility and no exit charge after seven days.

Potential Risks of Zero-Exit Load Mutual Funds

While mutual funds without exit loads offer flexibility, they are not risk-free. Here are some points to consider:

• Overtrading Temptation: The absence of exit charges might lead some investors to switch funds too frequently, potentially reducing long-term compounding benefits.
  
• Modest Returns in Debt Funds: Many no-exit-load debt funds prioritise capital safety over aggressive returns, which might not meet expectations in a bullish market.
  
• High Volatility in Thematic Funds: Certain zero-exit-load funds, especially those focused on specific sectors, may expose investors to sharper market fluctuations.

Pro Tip: Always ensure the fund’s investment strategy matches your financial goals and time horizon to mitigate unnecessary risks.

Conclusion

No-exit load mutual funds offer an excellent balance between returns and liquidity, especially for investors who prefer flexibility. Whether you're looking to invest in equity for long-term growth or park surplus cash in debt funds temporarily, these schemes can serve your needs without incurring redemption penalties.

However, always review a fund’s risk factors, historical performance, and your own investment goals before making a decision.

Frequently Asked Questions

Are mutual funds without exit loads always better?

Not necessarily. While they offer more flexibility, some may have lower returns or higher risk. Always evaluate based on your investment goals.

Is it possible to redeem mutual fund units at any time if there's no exit charge?

Yes, technically you can. However, make sure you're not exiting during a market dip or before achieving your financial goal.

What types of mutual funds commonly offer zero exit load?

Overnight and liquid debt funds typically waive exit charges after the first seven days of investment. Some index and thematic equity funds also offer low or no exit loads.

Do SIP investments also incur exit loads?

Yes, every SIP installment is considered an individual investment. If an exit load applies, it is determined based on the purcha

se date of each individual investment or installment.

Are tax implications affected by exit load status?

No, exit load and taxes are separate. Even if a fund has no exit load, capital gains tax may apply depending on the duration of your investment.