SEBI cuts mutual fund exit load cap to 3%

A mutual fund is like a big piggy bank where many people put their money together to invest.

When you take your money out, you may have to pay a small fee called an exit load.

A group in India called SEBI makes the rules for mutual funds to protect investors.

SEBI has now decided that this fee cannot be more than 3 percent of your investment.

Earlier, the fee could be as high as 5 percent.

This means it will be cheaper for people to take their money out of a mutual fund.

SEBI made this change as part of a new rulebook called the Mutual Funds Regulations, 2026.

These new rules replace the older rules from 1996.

More and more people in India are investing in mutual funds these days.

The total money invested and the monthly amounts saved are both growing to record highs.