1. Are the exit load charges applicable to all kinds of mutual funds?

Not really. The exit load period for equity funds, hybrid funds, and debt funds may vary. Liquid funds and overnight funds may not have any exit load, as these funds are used for short-term investments.

2. How can investors check the exit load of a mutual fund scheme?

The details of the exit load of the mutual fund scheme are mentioned in the Scheme Information Document and Key Information Memorandum provided on the mutual fund company’s website.

3. How does exit load impact returns during volatile markets?

In volatile markets, if an investor redeems their shares early, it may lead to a reduction in the NAV as well as the exit load, which may further reduce the amount invested. Being aware of exit loads helps investors from making any hasty decisions during market volatility.

4. Can exit load vary for different investment instalments in a SIP?

Yes. In an SIP, the purchase date and the period of holding are different for each instalment. The exit load is applicable only for the units that are redeemed before the exit load period ends.

5. Can I avoid exit load strategically?

Yes. You may avoid exit load by redeeming units after the exit load period, opt for no-load funds for your short-term needs, or plan a partial withdrawal from older units.