anuragmukherjee28
Moderator
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 charge although varies as per different fund houses . The rates of exit load depend on the type of mutual funds; different mutual funds charge different exit loads.
the less the exist load the better
HOW IS IT CALCULATED ? ( example )
An investor invests ₹10,000 in a mutual fund scheme that charges a 1% exit load for redemptions within one year from the date of purchase.
The NAV of the fund is ₹100 when the investor invests
The NAV of the fund becomes ₹110 when the investor wants to redeem the amount (before 1 year of last investment)
Calculation:
no of shares = ₹10,000 / ₹100/unit = ₹100 shares
Exit load = 1%
Net redemption amount = 100x₹110= ₹11000
Net Exit load =1% of ₹11000 = ₹110
Total money after exit load is deducted = ₹10890
Therefore, the investor will receive ₹10890 after the exit load has been deducted.
the less the exist load the better
HOW IS IT CALCULATED ? ( example )
An investor invests ₹10,000 in a mutual fund scheme that charges a 1% exit load for redemptions within one year from the date of purchase.
The NAV of the fund is ₹100 when the investor invests
The NAV of the fund becomes ₹110 when the investor wants to redeem the amount (before 1 year of last investment)
Calculation:
no of shares = ₹10,000 / ₹100/unit = ₹100 shares
Exit load = 1%
Net redemption amount = 100x₹110= ₹11000
Net Exit load =1% of ₹11000 = ₹110
Total money after exit load is deducted = ₹10890
Therefore, the investor will receive ₹10890 after the exit load has been deducted.
