Article

Exit Load
June 06 , 2012

An exit load is what gets knocked off your investment, when you exit a fund. A fraction of your redemption amount disappears, and the balance gets credited to you. Today, exit loads typically do not exist if you hold an investment long enough (which is even otherwise a good idea in equity funds).

As an example, say your investments were worth Rs.10,000, in a fund with 2% exit load. If you redeemed this, your bank would be credit Rs 9,800/- since Rs 200 would be the charged exit load.

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