Is exit load a standard charge across all mutual funds?
No, exit load is not a universal or standard charge across all mutual fund schemes. Whether an exit load is applicable, and the percentage charged, depends entirely on the scheme’s structure as defined by the Asset Management Company (AMC).
While many equity-oriented schemes impose an exit load if units are redeemed within a specified period (often 1% for redemptions within 12 months), others—especially liquid or overnight funds—may have no exit load or a shorter no-load window.
Key considerations for exit load applicability
- Varies by scheme type (equity, debt, hybrid, liquid)
- Specified in the Scheme Information Document (SID)
- May differ even between plans within the same fund family
- Generally waived after a minimum holding period (e.g., 1 year)
What if...
| Scenario | Explanation |
|---|
| You invest in multiple schemes | Each scheme may have a different exit load policy—check individually. |
| You redeem from a liquid fund | Most liquid funds don’t impose exit loads beyond 7 days. |
| You switch within the same AMC | Exit load may still apply based on scheme-specific terms. |
| You assume exit load is fixed | Always verify in the fund’s documents—there is no universal rate. |
Always check the latest Scheme Information Document or fund factsheet to understand if and how it applies to your investment.
Last updated: 16 Jun 2025
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