{"id":14790,"date":"2025-11-26T12:10:24","date_gmt":"2025-11-26T12:10:24","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=14790"},"modified":"2026-08-01T07:10:26","modified_gmt":"2026-08-01T07:10:26","slug":"are-your-mutual-funds-trapped-understanding-the-exit-load-lock-in-period","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/are-your-mutual-funds-trapped-understanding-the-exit-load-lock-in-period\/","title":{"rendered":"Are Your Mutual Funds Trapped? Understanding the Exit Load Lock-in Period"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#aioseo-what-is-exit-load-in-mutual-fund-investing\">What is Exit Load in Mutual Fund Investing?<\/a><ul><\/ul><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-exit-load-calculation-a-simple-percentage\">Exit Load Calculation: A Simple Percentage<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-understanding-the-exit-load-structure\">Understanding the Exit Load Structure<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-exit-load-vs-expense-ratio-dont-confuse-them\">Exit Load vs. Expense Ratio: Don&#039;t Confuse Them!<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-conclusion\">Conclusion<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aioseo-frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">After you have done your research, select a top-performance scheme and watch your investment growth. But when it comes to redeeming those hard-earned units, you might face a hidden charge off your total return that is called <strong>Exit Load. <\/strong>Both new and experienced investors should understand <strong>what is exit load in mutual fund <\/strong>is crucial. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">It is a mechanism that impacts your final withdrawal amount, and that can significantly alter your returns. So, if you want to avoid these unexpected fees, mastering the <strong>exit load <\/strong>concept is non-negotiable. This guide will demystify the <strong>exit load of mutual funds, <\/strong>explain the term, and show you how the exit calculation works in detail. Scheme-wise load structures are disclosed in every offer document and summarised by the <a href=\"https:\/\/www.amfiindia.com\" target=\"_blank\" rel=\"noopener\">Association of Mutual Funds in India (AMFI)<\/a>.&nbsp;<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8\"><strong>&#128161; Quick Answer<\/strong><br>An exit load is a fee the Asset Management Company (AMC) charges when you redeem mutual fund units before a minimum holding period has passed. It is expressed as a percentage of the redemption value and is deducted from the amount you receive, so it directly reduces your realised return. Its purpose is to discourage short-term churn and protect investors who stay put. You avoid it entirely by holding past the load period, by using the free redemption limit many schemes offer, or by choosing a no-load fund. Always check the load structure in the scheme document before you invest, not when you are trying to exit.<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-3c9ddd05750f72d5848d7fedc96b6e46\" id=\"aioseo-what-is-exit-load-in-mutual-fund-investing\" style=\"color:#023368\">What is Exit Load in Mutual Fund Investing?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <strong>exit load <\/strong>is a fee charged by the Asset Management Company (AMC) to the investor when they sell their <a href=\"https:\/\/navia.co.in\/mutual-funds\" title=\"\">mutual fund<\/a> units, before a specified period has elapsed since the purchase date. It&#8217;s like a penalty for early withdrawal, and some of the major purpose of the term is given below;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-ed1dc88668e54a6c788203f36b3af2ee\" id=\"aioseo-discourage-short-term-trading\" style=\"color:#ec4d37\">Discourage Short-Term Trading&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">We know that mutual funds are designed for long-term growth, especially equity funds. So, high-volume and short-term transactions can destabilize the fund manager&#8217;s strategy and increase administrative costs for the AMC. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-fe50c91a8dc81a6c6657ae9bb2e342a3\" id=\"aioseo-protect-long-term-investors\" style=\"color:#ec4d37\">Protect Long-Term Investors&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">By penalizing early exit, the load helps keep assets within the fund for longer, that allows the fund manager to maintain a stable portfolio and avoid forced selling of assets to meet the frequent redemption requests. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-300e06e80b8c7f5a059cce71522b46c7\" id=\"aioseo-revenue-secondary\" style=\"color:#ec4d37\">Revenue (Secondary)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The fees collected from the investors often go back into the scheme&#8217;s corpus (not the AMC&#8217;s profit) to benefit the remaining long-term investors. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In simple words, the <strong>exit load <\/strong>is a percentage fee that is charged on the <a href=\"https:\/\/navia.co.in\/blog\/understanding-nav-the-true-value-of-your-mutual-fund-investment\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">Net Asset Value (NAV)<\/a> of mutual fund units at the time of redemption. If the investor pulls out their money before a minimum holding period, typically from six months to two years. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-3ee45028c721356b12c7e4c2d779c267\" id=\"aioseo-exit-load-calculation-a-simple-percentage\" style=\"color:#023368\">Exit Load Calculation: A Simple Percentage&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <strong>exit load calculation <\/strong>is expressed as a percentage of the Net Asset Value (NAV) per unit at the time of redemption. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The standard formula is;&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Redemption Value = (NAV per Unit * Units Redeemed) &#8211; Exit Load Amount&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Where:&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Exit Load Amount = (NAV per Unit * Units Redeemed) * Exit Load Percentage&nbsp;&nbsp;<\/strong><\/p>\n\n\n\n<h3 style=\"color:#ec4d37\">How Does an Exit Load Work in Practice?<\/h3>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Just think that you invested in mutual fund scheme with the following terms:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Parameter<\/th><th>Value<\/th><\/tr><\/thead><tbody><tr><td>Initial Investment Date&nbsp;<\/td><td>January 1, 2024&nbsp;<\/td><\/tr><tr><td>Exit Load Term&nbsp;<\/td><td>1% if redeemed within 1 year&nbsp;<\/td><\/tr><tr><td>Investor Redemption Date&nbsp;<\/td><td>July 1, 2024 (6 months later)&nbsp;<\/td><\/tr><tr><td>Units Redeemed&nbsp;<\/td><td>1,000 units&nbsp;<\/td><\/tr><tr><td>NAV per Unit at Redemption&nbsp;<\/td><td>&#8377;50.00&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 style=\"color:#ec4d37\">Step 1: Determine the load<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Since the redemption occurred within the 1-year period, the 1% exit load applies.&nbsp;<\/p>\n\n\n\n<h4 style=\"color:#ec4d37\">Step 2: Calculate the Total Redemption Value (Before Load)<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Total Value = 1,000 units * &#8377;50.00\/ unit = &#8377;50,000&nbsp;<\/p>\n\n\n\n<h4 style=\"color:#ec4d37\">Step 3: Calculate the Exit Load Amount<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Exit Load Amount = &#8377;50,000 * 1% = &#8377;500&nbsp;<\/p>\n\n\n\n<h4 style=\"color:#ec4d37\">Step 4: Calculate the Net Redemption Value<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Net Redemption Value = &#8377;50,000 &#8211; &#8377;500 = &#8377;49,500&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Here the investor receives &#8377;49,500 with &#8377;500 being deducted as the <strong>exit load. <\/strong>&nbsp;<\/p>\n\n\n\n<a href=\"https:\/\/open.navia.co.in\/index-navia.php?utm_source=organic&amp;utm_medium=blog&amp;utm_content=exit_load_CTA\" target=\"_blank\" style=\"display:flex;width:100%\"><img decoding=\"async\" src=\"https:\/\/d1l8l3rp33cdzs.cloudfront.net\/images\/naviacee\/Open-free-demat-account%20%28blog%29%20%281%29.gif\" width=\"80%\" height=\"auto\" alt=\"Open a free demat account with Navia\" style=\"border-radius:10px;margin:5px auto;max-width:100%;height:auto\" \/><\/a>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-9cf2fe35a9048a42af5209da82279262\" id=\"aioseo-understanding-the-exit-load-structure\" style=\"color:#023368\">Understanding the Exit Load Structure&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">If you are analyzing <strong>what is exit load of mutual fund <\/strong>schemes, pay close attention to the following details:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Holding Period&nbsp;<\/td><td>Most critical factor. A scheme may charge 1% if redeemed within 365 days and 0% thereafter, or 0.5% if redeemed within 6 months and 0% if redeemed between 6 and 12 months. The longer you hold the units, the smaller the penalty.&nbsp;<\/td><\/tr><tr><td>Free Limits&nbsp;<\/td><td>Many AMCs allow investors to withdraw a small portion of their investment free of charge, even during the lock-in period. Many funds permit withdrawal of 10% to 12% of the units (or the investment amount) purchased in a specific folio within the exit load period, free of any load.&nbsp;<\/td><\/tr><tr><td>Load vs. No-Load Funds&nbsp;<\/td><td>You will encounter two main types of funds;&nbsp;<strong>Load Funds: <\/strong>Schemes that charge either an entry load or an exit load.&nbsp;<strong>No-Load Funds: <\/strong>Schemes that charge neither an entry load nor an exit load. These are often preferred by investors seeking maximum flexibility.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Load structures differ sharply by scheme category. Debt and hybrid categories such as <a href=\"https:\/\/navia.co.in\/blog\/what-is-income-funds\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">income funds<\/a> and <a href=\"https:\/\/navia.co.in\/blog\/what-is-interval-funds\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">interval funds<\/a> have their own redemption rules, and exchange-traded products avoid the load question entirely because they trade on the exchange &#8212; see <a href=\"https:\/\/navia.co.in\/blog\/etf-pricing-nav-inav-fair-value-explained\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">ETF Pricing: NAV, iNAV and Fair Value Explained<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-8746f12deb067a9e5324814a1c114af9\" id=\"aioseo-exit-load-vs-expense-ratio-dont-confuse-them\" style=\"color:#023368\">Exit Load vs. Expense Ratio: Don&#8217;t Confuse Them!&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Exit load and expense ratio are the important factors so, there is a chance to become confused with these factors. Will make it clear;&nbsp;<\/p>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Exit Load:<\/strong> A <strong>one-time fee <\/strong>that charged upon redemption, specifically aimed at deterring early withdrawal.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Expense Ratio:<\/strong> It is an <strong>annual charge <\/strong>that is deducted daily from the fund&#8217;s assets to cover all operating, management, and administrative costs.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The expense ratio affects your returns daily, but the exit load only affects your return if you break the stipulated holding period. Our guide to <a href=\"https:\/\/navia.co.in\/blog\/expense-ratios-explained\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">expense ratios<\/a> shows how that daily drag compounds over a long holding period.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-3b427070870385258096b5802cef6b64\" id=\"aioseo-conclusion\" style=\"color:#023368\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Understanding <strong>what is exit load <\/strong>isn&#8217;t about avoiding mutual funds; it&#8217;s about making an informed decision about your investment horizon. If you choose a mutual fund, you should commit to holding it for the period required to achieve the 0% load, thereby avoiding any unnecessary fee on your hard-earned profits. And&nbsp;the <strong>exit load calculation <\/strong>will help to ensure that your exit is a truly profitable one. Always read the fine print&#8212;that small percentage can make a big difference!&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">If you invest in instalments, the load period runs separately for each one, so it is worth reading our guide to <a href=\"https:\/\/navia.co.in\/blog\/smart-investing-which-sip-is-right\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">which Systematic Investment Plan (SIP) is right for you<\/a> before you set up a redemption.&nbsp;<\/p>\n\n\n\n<h3 style=\"color:#ec4d37\">Key Takeaways<\/h3>\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\">An <strong>exit load<\/strong> is a one-time fee charged on redemption when you sell units before the scheme&#8217;s minimum holding period.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">It is calculated as a <strong>percentage of the redemption value<\/strong> and deducted from what you receive, not billed separately.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Exit load is <strong>not the same as the expense ratio<\/strong> &#8212; the latter is an annual charge deducted daily whether you redeem or not.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Many schemes offer a <strong>free redemption limit<\/strong> within the load period, which is useful for emergency withdrawals.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">The cleanest way to avoid it is to <strong>hold past the load period<\/strong> or pick a no-load scheme from the outset.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">With Systematic Transfer Plans (STP) and Systematic Withdrawal Plans (SWP), <strong>each instalment carries its own load clock<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Do You Find This Interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\">We&#8217;d Love to Hear from you-<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png\" alt=\"feedback yes or no button\" class=\"wp-image-8901\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-ef43ada3b93011f5beda8fe9255db0a7\" id=\"aioseo-frequently-asked-questions\" style=\"color:#023368\">Frequently Asked Questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What is a good exit load for a mutual fund?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">A good exit load is generally 0%. Investors should aim for a scheme that is a No-Load Fund.<\/p>\n\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">If a fund does charge an exit load, the following structure is usually considered acceptable, as it reflects the fund&#8217;s <a href=\"https:\/\/navia.co.in\/blog\/category\/investments\/\" title=\"\">investment<\/a> objective:<\/p>\n\n\n<ul style=\"margin:0 0 18px 0;padding:0 20px 0 40px;line-height:1.9;color:#333\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Equity Funds:<\/strong> 0% if held for <strong>1 year<\/strong> or more.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Debt Funds (Liquid\/Ultra Short):<\/strong> 0% if held for a <strong>very short period<\/strong> (e.g., after 7-30 days) or 0% outright.<\/li>\n<\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">The faster the load drops to zero, the better the structure is for the investor&#8217;s flexibility.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How to avoid exit load in mutual funds?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">The most effective way to <strong>avoid exit load<\/strong> is to adhere to the fund&#8217;s mandate:<\/p>\n\n\n<ul style=\"margin:0 0 18px 0;padding:0 20px 0 40px;line-height:1.9;color:#333\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Hold Past the Lock-in Period:<\/strong> The easiest way is to ensure you do not redeem your units until the specified load period (usually 365 days for equity funds) has expired.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Use the Free Limit:<\/strong> Most schemes allow you to redeem <strong>10% to 12% of your units<\/strong> purchased within the last year <em>without<\/em> incurring a load. Use this free limit for emergency withdrawals.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Invest in No-Load Schemes:<\/strong> Choose funds that explicitly state a 0% exit load from the beginning.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Use STP\/SWP Strategically:<\/strong> When using Systematic Transfer Plans (STP) or Systematic Withdrawal Plans (SWP), ensure the redemption is scheduled to occur only after the units being redeemed have completed their load period.<\/li>\n<\/ul>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Is exit load charged after 1 year?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Generally, no, the exit load is typically not charged after 1 year for most <a href=\"https:\/\/navia.co.in\/equity\" title=\"\">equity<\/a> and hybrid mutual funds in India.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Which exit load is good?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">The best exit load is 0%. A fund with 0% exit load is called a No-Load Fund. If an exit load is unavoidable because you like a particular fund, a &#8220;good&#8221; structure is one that is:<\/p>\n\n\n<ul style=\"margin:0 0 18px 0;padding:0 20px 0 40px;line-height:1.9;color:#333\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Minimal Percentage:<\/strong> No more than 1%.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Short Duration:<\/strong> The load applies for the shortest possible time (e.g., six months, not two years).<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Has a High Free Limit:<\/strong> Allows redemption of a significant percentage (e.g., 15%) without load.<\/li>\n<\/ul>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Is exit load taxable?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">No, the exit load itself is not taxable. The exit load is a fee that is deducted from your gross redemption amount, reducing the final amount you receive.<\/p>\n\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER:<\/strong>&nbsp;<strong>Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Full disclaimer:&nbsp;<a href=\"https:\/\/bit.ly\/naviadisclaimer\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After you have done your research, select a top-performance scheme and watch your investment growth. But when it comes to redeeming those hard-earned units, you might face a hidden charge off your total return that is called Exit Load. Both new and experienced investors should understand what is exit load in mutual fund is crucial. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14852,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[209],"tags":[841,1129,393,23,842],"class_list":["post-14790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","tag-exit-load-lock-in-period","tag-expense-ratio","tag-investing","tag-mutual-funds","tag-nav"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/11\/Are-Your-Mutual-Funds-Trapped1-1.jpg","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/11\/Are-Your-Mutual-Funds-Trapped1-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/14790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=14790"}],"version-history":[{"count":8,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/14790\/revisions"}],"predecessor-version":[{"id":18761,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/14790\/revisions\/18761"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/14852"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=14790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=14790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}