Exit Load
A fee charged by some mutual funds if you redeem within a specified window.
Most equity mutual funds in India charge a 1% exit load if you redeem within one year of purchase. Liquid funds may charge a graded exit load for the first 7 days; many ELSS and index funds have zero exit load. The exit load is deducted from your redemption proceeds. SEBI rules allow exit loads up to 2%. Exit loads exist to discourage short-term trading; they do not apply on systematic withdrawals after the holding period.
Inside Finlo
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.