ExitLoad
Definition
A fee charged by mutual funds when an investor redeems (sells) units before a specified period. Exit loads discourage early withdrawals and protect long-term investors. The load percentage and applicable period vary by scheme and are disclosed in the scheme information document.
Example
An equity fund with a 1% exit load for redemptions within 1 year means if you redeem Rs 1 lakh within 12 months, Rs 1,000 is deducted as exit load.
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