Most experts prefer equity mutual funds with reasonable exit loads, as they help long-term investors by penalising short-term investors who create volatility by frequent entry and exit.
“Besides additional costs, the frequent entry and exit by short-term players may also hamper fund management. So, it is better to invest in funds that deter people from trading,” says Mrin Agarwal, Founder Director, Finsafe India and Co-founder, Womantra.
