Ch.9 · Systematic Transactions — SIP, SWP, STP · hard

Can an investor run an SWP from a scheme that has an exit load provision?

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EXPLANATION

SWP redemptions are treated as normal redemptions. If the units being redeemed fall within the exit load holding period, exit load is deducted. There is no special exemption from exit load for SWP transactions.

A.No — SWP is only permitted from schemes with zero exit load

B.Yes — but only after a lock-in of 6 months from SWP registration

C.Yes — SWP redemptions are always exempt from exit load as per SEBI rules

D.Yes — but exit load will apply on each SWP redemption if units are within the exit load period [✓ Correct]

EXPLANATION

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