Country's largest portfolio management services provider ASK Investment Managers has changed its exit load structure.

While previously the exit load was structured as 3, 2, 1% for 1st, 2nd and 3rd year respectively, from February 1 ASK has set in place a flat exit load of 1% for 0-3 years. There will be NO exit load from 36th month onwards.

The revised exit load structure will be applicable on all new inflows (including fresh folios and top-ups from existing folios) coming on or after February 1, 2021.

Do note that the exit loads for existing AUM remain intact and there will be no changes in the same.

Explaining the rationale for keeping exit loads, ASK Investment Managers said clients must understand that the PMS provider wishes to manage money for long-term. Exit Loads are meant to act as deterrent for any short-term behavior of clients on account of market volatility.

ASK believes a minimum of 3 years is a good time frame for portfolio managers to prove their alpha generation capabilities. Hence, retaining exit loads becomes a win-win situation for all stakeholders: client, channel partner and ASK.