Exit Load

Exit load is a fee that mutual funds charge when an investor exits or redeems their units before a specified period. The primary purpose of the exit load is to discourage premature withdrawals, which could negatively impact the fund and its existing investors. The exit load varies depending on the mutual fund and is determined by the fund manager. Generally: - Equity funds tend to have higher exit loads to encourage long-term investment. - ETFs, liquid funds, and debt funds often have little to no exit load due to their relatively stable nature. This fee helps the fund maintain stability and ensures that short-term traders don't disrupt the fund's performance.