Exit load

An exit load is a fee a mutual fund scheme charges when you redeem units before a stated period, expressed as a percentage of the redemption value. A common structure is 1% if redeemed within one year. It exists to discourage short-term churn, which raises costs for everyone who stays invested. The load is deducted from your proceeds, so you receive the NAV (Net Asset Value) minus the load. Check the scheme's exit-load table before redeeming: the period is counted per instalment, not per folio.