Exit Load — Mutual Fund Term Explained

A fee charged when you redeem mutual fund units before a specified holding period. Usually 1% if redeemed within 1 year. Nil after the lock-in.

Exit load is a penalty fee charged when you redeem units before a minimum holding period. Most equity funds charge 1% for redemptions within 12 months.

Formula

Exit Load Amount = Redemption Value × Exit Load %

Example

Redeem ₹50,000 within 1 year with 1% exit load → receive ₹49,500.

Related terms

• Redemption — Selling mutual fund units back to the fund house. Proceeds credited to your bank in T+1 to T+3 business days.
• NAV (Net Asset Value) — The price of one unit of a mutual fund, calculated daily from portfolio value minus liabilities divided by units outstanding.
• SIP (Systematic Investment Plan) — Investing a fixed amount in a mutual fund at regular intervals — typically monthly. Builds discipline and uses rupee cost averaging to reduce timing risk.

Browse the full mutual fund glossary, or see this concept in action in the fund screener.