By Niveshkarlo
September 9, 2026
Exit load is generally linked to the holding period of your investment. A scheme may charge an exit load when you withdraw before its specified period. For example, a scheme could have a different load for units redeemed within a particular period and nil exit load after that period.
Suppose your mutual fund scheme has: 1% exit load if redeemed within 1 year You invest ₹1,00,000. If the applicable redemption value is ₹1,10,000, a 1% exit load on the applicable redemption amount would be ₹1,100. You would receive the amount after applicable deductions.
Don't confuse these two: Exit Load A scheme-level charge that may apply when you redeem within the specified period. Capital Gains Tax Tax that may apply on the profit from selling your mutual fund units, depending on the fund type, holding period and prevailing tax rules. So, exit load and tax are separate costs.
No. Exit-load structures differ from one scheme to another. Some schemes may have an exit load for a specific period, while others may have nil exit load. AMFI's current New Fund Offer listings also show schemes with different exit-load structures, including examples where the load reduces over several days and becomes nil thereafter.
✓ Exit-load percentage Know how much may be charged. ✓ Applicable period Check how long you need to stay invested to avoid the load. ✓ Redemption rules See whether the charge applies to redemption, switch-out or specific transactions. ✓ Latest SID Check the scheme's current Scheme Information Document and applicable load structure.