Best Mutual Funds with Low Exit Load (2026)
An exit load in a mutual fund is the charge a mutual fund house deducts when an investor redeems units before completing a specified holding period. Not all schemes apply this charge. Some categories allow investors to exit without paying any fee. This article explains what exit load means, how taxation applies, and what investors should review in schemes that do not levy an exit load.
Top Mutual Funds with Low Exit Load
Here is a list of the top mutual funds with low exit load:
| Name | AUM | CAGR 3Y | Expense Ratio | Exit Load | NAV | Volatility | CAGR 5Y |
|---|---|---|---|---|---|---|---|
| Mirae Asset Nifty India Manufacturing ETF FoF | 112.42 | 25.18 | 0.09 | 0.05 | 20.20 | 15.00 | 0.00 |
| SBI Large & Midcap Fund | 37,496.73 | 20.63 | 0.73 | 0.10 | 717.21 | 11.37 | 18.59 |
| SBI Focused Fund | 42,998.42 | 20.97 | 0.74 | 0.10 | 423.25 | 10.84 | 15.64 |
| Tata Resources & Energy Fund | 1,208.98 | 22.38 | 0.58 | 0.25 | 56.54 | 15.00 | 18.05 |
| Tata India Pharma & Healthcare Fund | 1,239.57 | 25.40 | 0.71 | 0.25 | 35.31 | 12.71 | 17.42 |
| Tata Banking & Financial Services Fund | 3,212.85 | 21.14 | 0.52 | 0.25 | 53.94 | 12.48 | 14.60 |
| Tata Infrastructure Fund | 1,928.49 | 21.01 | 1.18 | 0.25 | 185.73 | 14.69 | 20.09 |
| SBI Contra Fund | 48,729.33 | 21.32 | 0.71 | 0.25 | 430.91 | 10.37 | 21.41 |
| Nippon India Quant Fund | 108.85 | 22.20 | 0.53 | 0.25 | 81.68 | 12.54 | 18.33 |
| Axis Nifty Midcap 50 Index Fund | 586.00 | 25.78 | 0.25 | 0.25 | 20.46 | 16.16 | 0.00 |
| SBI Nifty Smallcap 250 Index Fund | 1,403.82 | 21.22 | 0.40 | 0.25 | 17.48 | 16.99 | 0.00 |
| SBI Nifty Midcap 150 Index Fund | 973.89 | 24.59 | 0.40 | 0.25 | 19.11 | 15.40 | 0.00 |
| Tata Nifty Midcap 150 Momentum 50 Index Fund | 1,022.52 | 25.40 | 0.44 | 0.25 | 18.35 | 17.35 | 0.00 |
| Aditya Birla SL Nifty Midcap 150 Index Fund | 408.21 | 24.81 | 0.40 | 0.25 | 24.81 | 15.50 | 0.00 |
| Aditya Birla SL Nifty Smallcap 50 Index Fund | 245.83 | 25.88 | 0.48 | 0.25 | 20.60 | 18.63 | 0.00 |
| SBI Nifty Next 50 Index Fund | 1,814.36 | 23.82 | 0.31 | 0.25 | 19.46 | 15.56 | 0.00 |
| Kotak Pioneer Fund | 3,237.57 | 22.89 | 0.48 | 0.50 | 34.21 | 12.17 | 16.96 |
| ITI Multi-Cap Fund | 1,296.52 | 22.86 | 0.34 | 0.50 | 27.28 | 14.39 | 15.03 |
| DSP Healthcare Fund | 2971.07 | 23.31 | 0.65 | 0.50 | 42.16 | 13.03 | 16.31 |
| SBI Banking & Financial Services Fund | 10,414.75 | 25.20 | 0.72 | 0.50 | 52.61 | 12.63 | 15.47 |
Disclaimer: Please note that the above list of mutual funds with low exit load is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.
Note: The data on the list of mutual funds with low exit load is from 24th February 2026. This data is derived from the Tickertape Mutual Funds Screener.
- Plan: Growth
- Exit Load: Sorted from lowest to highest
Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
What is the Exit Load in a Mutual Fund?
A mutual fund investment does not always remain free at the time of redemption. If an investor withdraws money before the fund’s minimum holding period, the fund house deducts a percentage of the redemption value. This deduction is called the exit load. Fund houses calculate it on the Net Asset Value at the time of withdrawal.
For example, assume a scheme applies a 1% exit load. If an investor redeems units worth ₹1,00,000 within the applicable period, the fund house deducts ₹1,000. The remaining ₹99,000 is then credited to the investor’s account.
Overview of Top Mutual Funds with Low Exit Load
Mirae Asset Nifty India Manufacturing ETF FoF
Mirae Asset Nifty India Manufacturing ETF FoF operates as a fund of funds. It invests in an underlying ETF that tracks the Nifty India Manufacturing Index. The portfolio gives exposure to companies in capital goods, chemicals, industrials, and allied segments. The fund aligns its strategy with India’s manufacturing and industrial expansion theme.
SBI Large and Midcap Fund
SBI Large and Midcap Fund invests in both large-cap and mid-cap stocks. The scheme maintains a minimum allocation of 35% each to large-cap and mid-cap companies. This structure provides exposure to relatively stable large businesses, as well as mid-sized companies with higher growth potential.
SBI Focused Fund
SBI Focused Fund follows a concentrated strategy. The fund invests in up to 30 stocks across a range of market capitalisations. This approach reflects high conviction stock selection. The fund retains flexibility to allocate capital across sectors based on research inputs and valuation comfort.
Tata Resources and Energy Fund
Tata Resources and Energy Fund invests in companies connected to commodities, natural resources, energy, and related industries. The fund’s returns depend on global commodity cycles, energy price movements, and demand trends within these sectors.
Tata India Pharma and Healthcare Fund
Tata India Pharma and Healthcare Fund invests in pharmaceutical and healthcare-related companies. The portfolio captures domestic healthcare demand, export opportunities, regulatory developments, and innovation-led growth within the healthcare ecosystem.
Tata Banking & Financial Services Fund
Tata Banking & Financial Services Fund invests primarily in companies from the banking and financial services sector. The portfolio typically includes banks, NBFCs, insurance companies, and financial institutions. The fund focuses on capturing opportunities within India’s expanding financial ecosystem and credit growth across retail and corporate segments.
Tata Infrastructure Fund
Tata Infrastructure Fund invests in companies linked to infrastructure development such as construction, power, transportation, cement, and engineering. The portfolio aims to capture growth opportunities arising from infrastructure spending, urbanisation, and industrial expansion across India’s economy.
SBI Contra Fund
SBI Contra Fund follows a contrarian investment approach by identifying stocks that appear undervalued or overlooked by the broader market. The fund invests across sectors and market capitalisations, focusing on companies with potential for long-term value creation once market sentiment or business fundamentals improve.
Nippon India Quant Fund
Nippon India Quant Fund uses a quantitative investment model to select stocks. The strategy relies on data-driven factors such as price trends, volatility, and liquidity rather than traditional fundamental analysis. Portfolio allocation adjusts periodically based on model signals derived from market data.
Axis Nifty Midcap 50 Index Fund
Axis Nifty Midcap 50 Index Fund is a passive mutual fund that tracks the Nifty Midcap 50 Index. The fund invests in the same securities as the index in similar proportions, aiming to replicate its performance before expenses and tracking error.
How to Invest in Mutual Funds with Low Exit Load?
You can easily start to invest in mutual funds with low exit loads by following these steps:
- To invest in the best mutual funds with low exit load, you can visit a mutual fund investment platform such as smallcase.
- The next step is to research and identify the mutual funds with low exit loads that match your financial goals. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode and complete the process.
Taxation on Mutual Funds with Low Exit Load
The tax treatment of mutual fund returns is independent of whether a fund carries an exit load. Capital gains are taxed based on the fund category and holding period, as outlined for FY 2026-27 below.
| Capital Gains Type | Holding Period | Tax Rate (FY 2026-27) |
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.5% flat (up to ₹1.25 lakh per year tax-free) |
Note: Tax rules are subject to change. Investors are advised to consult a qualified tax advisor for guidance specific to their financial situation.
Benefits of Investing in Mutual Funds with Low Exit Load
- Full Redemption Value Without Deductions: Investors receive the full NAV-based value of their investment at the time of redemption, as the fund house does not deduct any exit charges. This makes the returns more predictable and transparent.
- Greater Liquidity for Short-Term Parking of Funds: Low exit load funds allow money to move in and out quickly without a financial penalty, making them ideal for parking surplus cash, emergency funds, or funds the investors expect to need within days or weeks.
- Efficient Cash Management for Businesses and HNIs: Corporations and high-net-worth individuals often use low-exit-load funds, particularly liquid and overnight funds, to manage idle cash efficiently while earning better returns than a savings account.
- No Timing Pressure on Redemptions: Since there is a low exit load window to wait out, investors can redeem the investment based purely on their financial goals or market judgment, not to avoid a fee.
- Better Compounding Across Multiple Switches: When investors switch between funds within the same AMC, the absence of an exit load ensures the full corpus continues to compound, preserving compounding over time.
Risks of Investing in Mutual Funds with Low Exit Load
- Higher Portfolio Turnover Temptation: The ease of exiting without a cost can encourage impulsive or frequent redemptions, which may disrupt the long-term wealth-creation plan and expose investors to poor timing decisions.
- Lower Yield Compared to Funds with Exit Loads: Funds with low or no exit load, such as overnight or liquid funds, usually invest in very short-term and low-risk instruments. Because of this conservative portfolio structure, their returns tend to be lower than equity funds or longer-duration debt funds that take higher market or interest rate risk.
- Overuse as a Substitute for Long-Term Investment: Investors sometimes over-allocate to low-exit-load funds for the comfort of easy exit, missing out on the higher return potential that comes with staying invested in equity or hybrid funds over a longer horizon.
- Tax Implications for Every Redemption: Each redemption, even in a low-fee fund, is a taxable event. Frequent exits can trigger short-term capital gains tax repeatedly, reducing your effective post-tax returns.
Factors to Consider Before Investing in Mutual Funds with Low Exit Load
- Purpose and Investment Horizon: Low exit load funds are commonly used for short-term liquidity, emergency reserves, and interim cash management. They may not align with long-term wealth creation horizons of 5–10 years due to their underlying asset profile.
- Fund Category and Underlying Portfolio: Low exit load funds invest across different instruments, including overnight securities and short-duration bonds. Credit quality, maturity profile, and portfolio composition influence overall risk and return characteristics.
- Expense Ratio: Even in the absence of an exit load, the expense ratio directly affects net returns. Variations in expense ratios across similar low-fee funds can influence outcomes, particularly in short-term instruments where return margins remain relatively narrow.
- Taxability of Returns: Returns from debt-oriented low exit load funds are taxable according to the investor’s applicable income tax slab under current tax rules. Post-tax returns, therefore, depend on an individual’s tax bracket and redemption frequency.
- Liquidity Processing Time: Although low exit load funds offer flexible exits, redemption timelines vary. Liquid funds typically credit proceeds on the next business day (T+1), while other categories may follow T+2 or T+3 settlement cycles.
Conclusion
Mutual funds with low exit loads offer a compelling combination of flexibility, transparency, and liquidity that suits a wide range of investors, from those managing short-term cash to those who frequently rebalance their portfolios. However, the absence of an exit load should not be the sole reason you choose a fund. You can weigh the fund’s return potential, expense ratio, underlying risk, and tax implications alongside your own financial goals and investment timeline.
Frequently Asked Questions About Mutual Funds with Low Exit Load
An exit load in a mutual fund is the fee a fund house deducts when an investor redeems units before completing a specified holding period. The fund calculates this charge as a percentage of the Net Asset Value at the time of redemption. For example, if a scheme applies a 1% exit load and an investor withdraws ₹50,000 within the defined period, the fund deducts ₹500 from the amount before crediting the remaining amount.
Overnight funds, liquid funds, and several ultra-short-duration and money-market funds typically operate with zero exit loads. For liquid fund exit loads, many schemes either do not charge a fee or apply it only for very short holding periods, as defined in the scheme document.
Investors can avoid exit load by redeeming units after completing the minimum holding period mentioned in the scheme information document. Choosing categories such as overnight or liquid funds may also help, as many of them offer zero exit loads. While reviewing costs, investors should not confuse exit load with the entry load in a mutual fund, which regulators have already discontinued.
No, not all mutual funds carry an exit load. Fund categories such as overnight funds, liquid funds, and certain index funds generally do not have an exit load. Equity funds and hybrid funds, however, commonly charge an exit load if units are redeemed within a specified period. The exact structure varies across AMCs and schemes.
The absence of an exit load does not determine a mutual fund’s overall suitability or quality. A fund’s performance depends on factors such as its investment objective, underlying portfolio, expense ratio, and fund management. An exit load is one of several cost-related parameters and should be evaluated alongside other factors before drawing any conclusions.
Disclaimer: Mutual fund investments are subject to market risks. The information provided here is for educational purposes only and does not constitute investment advice. Please read all scheme-related documents carefully before investing.
Yes, exit load applies to SIP investments as well. Each SIP instalment is treated as a separate investment with its own purchase date. If any instalment is redeemed before the exit load period specified in the scheme document, the applicable exit load is deducted from that particular instalment at the time of redemption.
Exit load status does not directly alter the tax treatment of mutual fund returns. Capital gains tax is determined by the fund category and the holding period, regardless of whether an exit load applies. However, since exit load reduces the redemption proceeds, it effectively lowers the net amount on which gains are calculated, marginally impacting the absolute tax liability.
Redemption timelines vary by category. Liquid funds typically credit proceeds within one business day (T+1), overnight funds on T+1 as well, while other categories may take T+2 or T+3 business days. Always check the scheme information document for the exact timeline.
