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High Exit Load

Quantum Long Term Equity is the only equity fund that levies a high exit load for short-term investments…

I have been investing in Quantum Long Term Equity via the SIP route for the last 3 years. Is there any redemption in the fund? The total assets managed by the fund are worth only Rs 200 crore. Should I redeem my holding? -Sunil Khandwala

An equity fund managing Rs 200 crore is not a small fund. It would be bad if the entire assets were contributed by just 10 investors, which is not the case here. Quantum Long Term Equity has largely retail investors. You should worry about the fund’s assets under management only if you contribute to a major part of them.

Furthermore, Quantum Long Term Equity has a very strong deterrent by way of its exit load, which is 4 per cent for investments that are less than 6 months old. The exit load goes down by half a per cent for every six month period that follows. Hence, if an investor is getting out of this fund before 2 years, he will be levied an exit load, which no other equity fund in India levies.

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