If investors exit a scheme within a specific time frame, the mutual fund will charge them an exit load.
Exit load period and mutual fund fees calculated as a percentage of the amount that can be redeemed at applicable NAVs.
Due to the longer investment horizons of equity funds compared to debt funds, mutual funds typically impose higher exit loads.
Exit loads are imposed by most actively managed equity funds. Many index funds, do not charge exit loads.
Because exit load is charged on your redemption rather than your gains, you must pay it even if you sell your asset at a loss.
Some debt fund categories, overnight funds & majority of ultra-short duration funds, do not charge exit loads.
To learn about the exit load, which will always help in making smart decisions, you should read the scheme information documents.
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