Bank of India MF: New 1% Exit Load on Redemptions – SIP Impact

THE PIP (TL;DR) Your flexibility to redeem mutual fund units without charges has changed for some Bank of India schemes.

• Bank of India Mutual Fund revised exit loads, effective July 17, 2026.
• The fund house adjusted policies to refine redemption conditions for various schemes.
• A 1% charge now applies to units exceeding 10% of investment if redeemed within three months.

Bank of India Mutual Fund has announced a significant revision to the exit load structure across several of its schemes, a change set to take effect from July 17, 2026, as reported by Value Research. This update primarily introduces a 1% exit load on units that exceed 10% of the total investment, specifically if these units are redeemed within a three-month window from the purchase date.

This new structure marks a departure from the previous policy, which featured varying fixed exit load periods ranging from 60 days to 365 days, depending on the individual scheme. An exit load, for those unfamiliar, is essentially a fee charged by a mutual fund house when an investor sells or redeems their units before a specified period, often designed to discourage short-term trading and maintain fund stability.

For you, the investor, this means a shift in how early redemptions are handled. If you need to pull out a small portion of your investment—up to 10% of your total units—within three months, you will not incur any charge. However, if your redemption request exceeds this 10% threshold during that initial three-month period, the 1% exit load will be applied to the units above that limit. This adjustment particularly impacts those who might need to access a larger portion of their funds sooner than anticipated.

A wide array of schemes are affected by this change, including the Bank of India Balanced Advantage Fund, Bank of India Banking & Financial Services Fund, Bank of India Conservative Hybrid Fund, Bank of India Credit Risk Fund, Bank of India Flexi Cap Fund, Bank of India Large & Mid Cap Fund, Bank of India Large Cap Fund, Bank of India Manufacturing & Infrastructure Fund, Bank of India Mid & Small Cap Equity & Debt Fund, Bank of India Mid Cap Fund, Bank of India Multi Asset Allocation Fund, Bank of India Multi Cap Fund, and Bank of India Small Cap Fund. Investors in these funds should review their investment horizon against these new redemption rules.

ONE THING TO CONSIDER TODAY Review your mutual fund investments to ensure your liquidity needs align with the updated exit load policies of your funds, especially for those with shorter-term financial goals.