Exit load is a fee charged by mutual funds when an investor redeems (sells) units before a specified holding period. It is designed to discourage early withdrawals and ensure investors stay invested for the recommended duration.
For example, if a mutual fund has an exit load of 1% for redemptions within 1 year, and you withdraw ₹10,000 before completing a year, you will receive ₹9,900 (after deducting ₹100 as exit load).
Not all mutual funds have an exit load, and the charges vary based on the fund type and AMC policies. Always check the fund’s exit load structure before investing.
Exit load is a fee charged by mutual funds when an investor redeems (sells) units before a specified holding period. It is designed to discourage early withdrawals and ensure investors stay invested for the recommended duration.
For example, if a mutual fund has an exit load of 1% for redemptions within 1 year, and you withdraw ₹10,000 before completing a year, you will receive ₹9,900 (after deducting ₹100 as exit load).
Not all mutual funds have an exit load, and the charges vary based on the fund type and AMC policies. Always check the fund’s exit load structure before investing.
