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What is Exit load, how much does it cost, how to avoid it — complete Hindi guide for mutual fund investors.
Published by The Retail Trader · AUG 05, 2026 · Features
What is Exit load, how much does it cost, how to avoid it — complete Hindi guide for mutual fund investors.
Exit load = Early withdrawal penalty. If you sell the mutual fund before the specified time then the fund house charges.
Keep these six points in mind:
• Equity Fund — Exit Load: 1%, Period: If redeemed within 1 year
• Debt Fund — Exit Load: 0.5-1%, Period: If redeemed within 3-6 months
• Liquid Fund — Exit Load: 0, Period: No exit load
• ELSS — Exit Load: 0, Period: 3-year lock-in (no exit load)
• Index Fund — Exit Load: 0.25-0.5%, Period: If redeemed within 7-15 days
• ETF — Exit Load: 0, Period: No exit load
Keep these five points in mind:
• Investment: ₹1,00,000 in equity fund
• Exit load: 1% if redeemed within 1 year
• Redeemed after 6 months: ₹1,10,000 (10% gain)
• Exit load: ₹1,10,000 × 1% = ₹1,100
• Net amount: ₹1,08,900 (instead of ₹1,10,000)
Equity fund → hold for 1 year. Debt fund → hold for 6 months.
Some funds do not charge exit load. Check before investing.
Want to switch funds? Use STP, not lump sum redemption.
Liquid fund lo — no exit load for short-term parking.
Keep these four points in mind:
• When charged — Exit Load: On redemption, Expense Ratio: Annual
• Amount — Exit Load: One-time, Expense Ratio: Ongoing
• Purpose — Exit Load: Deter early exit, Expense Ratio: Fund management
• Avoidable — Exit Load: Hold period complete, Expense Ratio: No (always charged)
Keep these points in mind:
• 📌 EXIT LOAD
• 📊 Early withdrawal penalty
• 📊 1% for equity (within 1 year)
• 📊 0.5-1% for debt (within 3-6 months)
• EXIT LOAD BY TYPE:
• 📊 Equity: 1% (within 1 year)
• 📊 Debt: 0.5-1% (within 3-6 months)
• 📊 Liquid: 0 (no exit load)
• 📊 ELSS: 0 (3-year lock-in)
• 📊 ETF: 0
• HOW TO AVOID:
• ✅ Hold for required period
• ✅ Choose no-exit-load funds
• ✅ Use STP instead of redemption
• ✅ Liquid fund for short-term
Keep these points in mind:
• Mutual Fund Types | Expense Ratio | SIP vs Lump Sum
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.