At the time of investment in a mutual fund, most of the investors look for returns, risk, etc. But at the time of exit, the small fee known as “Exit Load” often plays a key role. This fee is applicable to most of the mutual funds, but there are certain funds that do not charge any exit load.
In today’s blog post, we will give you an overview of a list of mutual funds with no exit load.
What are Exit Loads?
An exit load is a type of fee that is charged by asset management companies when an investor redeems or withdraws their investments before a stipulated time period. The fee is generally in the form of a percentage and deducted from the amount of redemption. It is imposed to discourage frequent buying and selling of mutual funds and to help fund managers maintain stability in the portfolio.
Example of Exit Load
Let’s understand the exit load through an example.
Mr A has invested 1 Lakh in a mutual fund scheme. The exit load in the scheme is 1% if the switch or redemption is placed within 365 days. He invested on 1st Jan 2025, but due to unfortunate circumstances, he redeemed the amount, which was valued around 1,10,000 INR on 8th October 2025.
As he was redeeming before 365 days, he will be liable to pay exit load. It is calculated on the redemption amount of 1,10,000 INR.
Exit Load = 1% * 1,10,000 = 1100 INR
The final amount received by Mr A will be calculated as follows:
1,10,000 – 1100 = 1,08,900 INR.
Top Mutual Funds with No Exit Load
| Fund Name | 1 Month Return | 3 Months Return | 6 Months Return | 1 Year Return | AUM |
|---|---|---|---|---|---|
| WhiteOak Capital Mid Cap Fund | 4.06 | 16.47 | 5.53 | 11.2 | 5732 |
| DSP Natural Resources and New Energy Fund | -3.62 | -0.19 | 3.87 | 16.62 | 2457 |
| White Oak Capital Special Opportunities Fund | 5.38 | 17.68 | 5.69 | 8.25 | 1601 |
| UTI Nifty 500 Value 50 Index Fund | -2.35 | 4.18 | 1.86 | 12.86 | 775 |
| WhiteOak Capital Pharma and Healthcare Fund | 5.82 | 20.11 | 13.74 | 16.71 | 664 |
| Kotak Nifty Commodities Index Fund | -1.78 | 5.94 | 2.73 | 9.96 | 298 |
| Navi Nifty India Manufacturing Index Fund | 1.89 | 11.55 | 2.32 | 9.46 | 76 |
| Nippon India Nifty Auto Index Fund | 4.78 | 12.63 | -4.27 | 14.62 | 45 |
| UTI Nifty India Manufacturing Index Fund | 1.92 | 11.63 | 2.24 | 9.33 | 29 |
| DSP Nifty Healthcare Index Fund | 6.04 | 16.63 | 8.68 | 10.5 | 20 |
Overview of Mutual Funds with No Exit Load
The overview of mutual funds with no exit load is as follows:
1. WhiteOak Capital Mid Cap Fund
The fund was launched in September 2024 and is an actively managed scheme that focuses on mid-sized companies having strong growth potential. As the fund invests in mid-cap stocks, it carries high risk and comes with higher volatility. But in the long run, it also posts higher returns.
2. DSP Natural Resource and New Energy Fund
This fund was introduced in 2025 and is thematic in nature. It primarily invests in companies engaged in the natural resource and energy sector, such as oil and gas, metals, etc. As this is a sectoral fund, it is highly sensitive to global commodity prices. This fund is suitable for investors having a high-risk profile.
3. WhiteOak Special Opportunity Fund
This is another thematic fund offered by WhiteOak Asset Management Company, and it was introduced in December 2024. The fund invests in special opportunity arises in the economy, that include changes in policy, business transformation, etc. These opportunities arise because of changing economic trends and unique investment opportunities.
4. UTI Nifty 500 Value 50 Index Fund
This is a passive fund that tracks the performance of the Nifty 500 Value 50 index, which consists of 50 stocks that are selected from the Nifty top 500 stocks list. The fund manager has limited involvement in the performance of this fund. It is suitable for cost-conscious investors.
5. WhiteOak Capital Pharma and Healthcare Fund
Similar to other WhiteOak funds, it was also introduced in 2024. This sectoral fund invests in companies that are primarily engaged in pharmaceutical, hospital, and other healthcare services, etc. This is suitable for investors seeking growth opportunities in the healthcare sector.
6. Kotak Nifty Commodities Index Fund
This is a passive index fund launched in 2025, primarily investing in an index that tracks the prices of companies linked to commodities. The performance of the commodities sector is cyclical in nature; hence, it is suitable for investors who want exposure to the commodities theme and have a high risk appetite.
7. Navi Nifty India Manufacturing Index Fund
This fund was launched by Navi Mutual Fund in November 2024, and it tracks the Nifty India Manufacturing Index. This index includes companies engaged in the manufacturing sector, such as industries, auto, capital goods, etc. This fund offers investors an opportunity to take exposure in the manufacturing sector at a lower cost.
8. Nippon India Nifty Auto Index Fund
The portfolio of this index fund includes companies from the auto sector, including two- and four-wheeler manufacturers. Investing in this fund can help an investor by taking advantage of rising demand for vehicles, etc. However, this fund is highly volatile in nature because of changing government policies.
9. UTI Nifty India Manufacturing Index Fund
This passive fund replicates the performance of the Nifty manufacturing index. Because of its passive investment approach, stock picking is not done by the fund manager. Investing in it allows an investor to participate in the manufacturing sector of India.
10. DSP Nifty Healthcare Index Fund
The portfolio of the DSP Nifty Healthcare Index Fund includes companies from pharma, hospitals, and diagnostic centres, etc. This fund was launched in June 2024. This fund is suited for investors who want to take exposure in the healthcare industry.
Read Also: Best Passive Mutual Funds in India
Mutual Funds with No Exit Load vs Mutual Funds with Exit Load
Before investing, compare mutual funds with no exit load and those with an exit load to understand their impact on liquidity, redemption costs, and long-term investment planning.
| Basis | Mutual Funds with No Exit Load | Mutual Funds with Exit Load |
|---|---|---|
| Exit Charges | No exit load is charged on redemption. | Exit load is charged if units are redeemed before the specified period. |
| Liquidity | Offers higher liquidity as investors can withdraw funds without any penalty. | Liquidity is comparatively lower due to the applicable exit load on early redemption. |
| Portfolio Rebalancing | Investors can rebalance their portfolio freely without additional costs. | Frequent portfolio rebalancing may result in exit load charges. |
| Investment Horizon | Suitable for investors with short- to medium-term investment needs or uncertain cash flow requirements. | Better suited for investors with a long-term investment horizon. |
| Cost of Redemption | No additional redemption cost is involved. | Early redemption reduces the amount received due to the applicable exit load. |
| Best Suited For | Investors looking for flexibility, liquidity, and easy access to their money. | Investors who intend to stay invested for the recommended holding period and avoid premature withdrawals. |
Why One Should Invest in Funds with No Exit Load
The key reason why one should invest in mutual funds having no exit load is as follows:
- No Redemption Cost: When exit costs are applicable to a fund, it reduces the amount that an investor receives at the time of redemption. Therefore, investing in a fund that has no exit load can avoid unnecessary cost.
- Rebalancing: Having an investment in a fund that has no exit load allows you to easily rebalance your portfolio based on market dynamics. Regular rebalancing is also essential while investing in market-linked securities.
- Higher Liquidity: The key advantage of investing in a no-exit load fund is that it allows you to redeem your investment without paying any penalty. It offers higher liquidity for investors.
Conclusion
On a concluding note, investment in a mutual fund having zero exit load is a smart choice for the investor seeking liquidity. This fund can help an investor regularly rebalance their portfolio based on different market conditions. However, choosing funds with zero exit load should not be the only parameter to select the fund; there are various other factors, such as fund manager performance, investment horizon, etc., before investing in funds. One should consult their investment advisor before investing in a mutual fund.
Frequently Asked Questions (FAQs)
Do all mutual funds have an exit load?
No, not all mutual funds charge an exit load.
Where to check the exit load of a mutual fund?
To check the exit load of a mutual fund, one can visit the website of the asset management company and check for the factsheet, KID, SID, etc. of a fund.
Is it possible that the exit load can change?
Yes, it is possible that the exit load of a fund can be revised by the asset management company.
Why are mutual fund charges exit loads?
The asset management company charges an exit load because they want investors to discourage redeeming their investment too frequently and maintain portfolio stability.
Is there any exit load in ELSS mutual funds?
No, there are no exit load in ELSS mutual funds, but these funds come with a mandatory lock-in period of 3 years.
