Costs and charges
What is exit load?
An exit load is a charge some schemes deduct from your redemption value if you sell units within a set period, typically to discourage short-term trading.
How it works
The scheme documents set the load and the period. Many equity schemes charge about 1% on units redeemed within a year; many debt and index schemes charge little or nothing. The load is paid back into the scheme, so it benefits the investors who stay.
For SIPs, each instalment's own purchase date counts, so older units may be free of the load while recent ones are not. Switches and STPs count as redemptions too.
Example
You redeem ₹1 lakh of units that carry a 1% exit load. ₹1,000 is deducted and you receive ₹99,000 (before any tax).
Exit load calculator
What you receive when an exit load applies.
An illustration with the numbers you enter, not a forecast. Returns from mutual funds are not guaranteed.
Keep in mind
- Check the exit load before a switch or STP.
- Liquid funds have a small graded exit load for the first 7 days.
Questions people ask
Is there an exit load on SIP units?
Yes, if the scheme has one: each instalment is checked against its own date.
Who gets the exit load?
It goes back into the scheme, not to the fund house or distributor.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.