Hi, I just decided to exit one of my MF’s and from the looks of it i have been charged a substantial redemption charge. My MF had grown to about ~3% and the redemption charge reflects an increase of just ~1.1%.
Any thoughts of why this would happen? or if this was a mistake?
Thank you
Well, there is no redemption charge as such but certain mutual funds(mostly equity funds) have an exit load which is usually 1%. The duration for which you have to hold the units to avoid paying the exit load will be mentioned in the scheme related document. The duration is usually 1 year. Read this for more.