What is exit load?
Exit load is a charge that may apply when an investor redeems units before a specified holding period.
Why It Matters
Exit load should be checked before switches, redemptions, STPs, or portfolio consolidation.
Simple Example
A mutual fund may charge an exit load if units are redeemed before a defined period, reducing the amount received by the investor.
When This Term Matters
- Planning redemptions
- Switching schemes
- Setting STP or SWP
- Consolidating old portfolios
Common Mistakes
- Redeeming without checking load
- Frequent switching
- Ignoring tax along with exit load
- Using unsuitable products for short-term needs
Questions To Ask
- What is the exit load period?
- How much load applies?
- What tax may apply?
- Is redemption necessary now?
How FPnest Helps
- Explain the term in simple language
- Connect it with relevant FPnest products or services
- Discuss suitability, risk, taxation, liquidity, and documentation
- Help the client ask better questions before taking action
Mutual Fund Portfolio Review