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Glossary Mutual Fund / Term

Exit Load

Mutual Fund houses collect a fee from the investors at the time of joining or leaving a scheme. This fee is referred to as a “load” and the amount charged while exiting a scheme is called as the Exit Load.
The objective behind this charge is to dissuade the investors from making frequent withdrawals or discourage them from exiting a mutual fund. Exit Load is expressed as a percentage and is calculated on the NAV applicable on the day of transaction.

For example, some funds have an exit load for exiting a scheme within one year of its purchase.

Permanent link Exit Load - Creation date 2020-05-23


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