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An exit load is the fee AMCs (Asset management companies) charge the investor at the time of exiting or retrieving the units of the fund. The primary reason for levying exit load is to discourage investors from backing out and pulling out their investments before the lock-in period is over.
May 22, 2024 · The exit load is a fee charged by a mutual fund company when investors redeem or sell their units before a specified period. The purpose of exit load is to discourage short-term trading and to compensate the fund for potential costs associated with the early redemption of units.
Jun 21, 2022 · Mutual funds charge exit load on redeeming fund units, not part of expense ratio. It varies, discourages early exiting, can be a percentage of NAV. Investors redeemed early face an exit charge.
Exit loads are minor penalties imposed by the AMCs to discourage premature redemption of mutual funds. An exit load is calculated on the Net Asset Value (NAV) for each investment or SIP as per the exit load mentioned in the factsheet for the particular month when the fund has been purchased.
Nov 23, 2022 · What is exit load in mutual funds? Exit load is a fee charged by mutual fund houses in the event that an investor makes a partial or full redemption within a stated period from the date of investment. The time period for which it applies varies with the type of fund.
Jul 18, 2024 · Exit load in mutual funds refers to a fee levied by Asset Management Companies when investors redeem their mutual fund units before a specified period. It acts as a deterrent against premature withdrawals and aims to discourage investors from frequent trading, promoting stability within the fund.
Exit Load is an important element in the Mutual Fund investment landscape. It is a fee that acts as a financial barrier, discouraging investors from selling their units prematurely and promoting a more committed approach to their investment journey.
