what is entry load? what is exit load?
Answers were Sorted based on User's Feedback
Answer / chandu
entry load is the initial charges collected by mutual fund
company, those are not refundable.
exit load is the fee collected at the time of withdraw your
investment.
Is This Answer Correct ? | 66 Yes | 5 No |
Answer / sanjeev ranjan
entry load are those charges which is levied on investor
when he buy any mutual fund from distributor companys and
exit load charges are those when invesstor surrender their
mutual fund to distributor co.'s
at that time the charges are rs.100crore 2.5%,till 300 cr.
2.25%,till 600cr.2.00% and after that any purchases 1.75%
Is This Answer Correct ? | 28 Yes | 9 No |
Answer / amod kumar
entry load is a charge levied by AMC in the in case of NFO
(new fund offer) to meet the adertising & peliminary exp of
the new scheam.in case of open ended fund later on AMC
charge these exp as recurring exp.
exit load is the charge which is levied by AMC in case of
the investor exit from the scheam. it can very from time to
time. if you exist early you will have to pay higher exit
load which can be less in case you saty with the scheam for
long time.
for both entry load and exit load, there are range of rates
provided by AMFI, compnies have to charge within those
ranges with the follow up of guidelines.
Is This Answer Correct ? | 19 Yes | 1 No |
Answer / santosh
entry load is the initial charges collected by mutual fund
company, those are not refundable.
exit load is the fee collected at the time of withdraw your
investment.
Is This Answer Correct ? | 14 Yes | 2 No |
Answer / abhit saini
I would like to correct Ms. Geeta over here. The exit load hasn't been called off by SEBI. You are right about the entry load. SEBI always believed that the true objective of mutual funds is ‘capital appreciation over the long term’.
So, by abolishing the entry load, it expected AMC's to either increase the exit load(i.e. the percentage), or extend the exit load time frames, forcing the investors to hold their funds for a longer period of time.
And SEBI was very much successful in this step, as most AMC's responded by making the necessary changes.
For e.g. among the larger fund houses, UTI Mutual for instance will charge an exit load of 1 per cent for most of its equity schemes, if the investor sells the fund within three years of its purchase. This cap was earlier one year.
In the UTI”s Retirement Benefit Pension Fund, the holding period to avoid exit load is as high as five years. Similarly, most equity schemes offered by AMCs such as Franklin Templeton India, Reliance, Fidelity, Bharti Axa and ING Vysya have upped the time limit for charging exit load to three years.
Is This Answer Correct ? | 13 Yes | 2 No |
Answer / geeta
The entry and eit load has been called off by SEBI now. So there are no entry and exit load in mutual fund.
Is This Answer Correct ? | 3 Yes | 12 No |
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