by
Mr. Srikanth Meenakshi, Founder and Director,
FundsIndia.com
Exit load is a charge levied by the
mutual fund house at the time of redeeming a mutual fund investment. It is
typically expressed as a percentage of the redemption amount depending on the
number of days an investor has stayed invested in the fund.
For example, equity funds typically
levy an exit load of 1 per cent if redemption is made within one year of making
an investment. Debt funds have a lower charge and for a lesser period.
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| Srikanth Meenakshi, FundsIndia.com |
Fund houses occasionally make
changes to exit loads by either changing the amount or the time period that it
is applicable for. Such changes will be applicable only for investments made
from the date of such announcements.
Investments made prior to it will
not be affected. Investments will be bound by the exit load criteria that are
in force at the time it was made.
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