Mutual Funds: If you withdraw money ahead of time, bags can be light, know what the exit load is

Last updated: 02 June 2025, 19:35 IST Mutual Fund was taken from exit tax investors when they invest before the fixed period. These costs are to encourage long -term investments and maintain the stability of funds. New -delhi. Exit load is a levy taken from investors from mutual fund when releasing their investment before a fixed period (removed). The fund house is charged to trade investors from short -term and discourage long -lasting investments. Exit load is usually a small percentage of net asset value (NAV). Different mutual funds vary the duration and rate of exit load. This usually applies to 1 year in equity funds, while it can occur in date funds for a short time. There is no exit load in some funds such as liquid funds. Why is the exit charge imposed? Encourage long -term investment to: Mutual Fund aims to create wealth creation in the long term. Exit load reduces short -term withdrawal. Fund stability: Regular withdrawal should change the portfolio, which increases costs. Exit load reduces this effect. Protecting the interests of investors: It ensures that the fund management is fluent and that the existing investors are not damaged. Exit load Calculation Exit load is usually based on the NAV at the time of the salvation of units. This levy is applied only when you withdraw before the holding period (eg 1 year) is set by the fund house. Suppose you have invested in a equity fund, the exit charge of which is 1 percent if your units of Rs 50,000 in 6 months before 1 year, then exit load = 50,000 × 1 percent = 500 rupees will be deducted, and you get Rs 49,500. Over the past five years, Rs 49,500. Business News Team has been part of the team for almost 2 years. He has a decade of experience in journalism. … Read more, after the past five years have started a career with print media, there is a senior copy editor in News18hindi. Business News Team has been part of the team for almost 2 years. He has a decade of experience in journalism. … Read more about India Pakistan’s latest news on News18 India Location: New -Delhi, Delhi Homebusiness, If you withdraw money ahead of time, there can be baking light, what happens the exit load