what is entry load? what is exit load?

Answers were Sorted based on User's Feedback



what is entry load? what is exit load?..

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

what is entry load? what is exit load?..

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

what is entry load? what is exit load?..

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

what is entry load? what is exit load?..

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

what is entry load? what is exit load?..

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

what is entry load? what is exit load?..

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

Post New Answer

More Banking Finance Interview Questions

While putting a business plan to a Venture Capitalist firm, how will an entrepreneur price his/her business idea

0 Answers   iTrust,


What is an auction ? Why does it occur

3 Answers   Bank of Bahrain and Kuwait,


What is nominal account ?

18 Answers   BPO,


If you have to operate your account, what are the various ways you can take?

0 Answers  


which kind of questions can be asked to a mba in sbi interview?

0 Answers   TATA,






What do yoy mean by repo rate & reverse repo rate.

1 Answers  


You are aware of ATMs, Right. Can you quote some disadvantages of ATM?

0 Answers   IBPS,


What is marginal standing facility (msf)?

0 Answers  


What are different types of Risks?

45 Answers   CNG, COCO Traders, Garware, Human Resources, ICICI, Project Management‎,


What is Bancassurance?

1 Answers  


How far are the different government schemes useful to the poor?

0 Answers   State Bank Of India SBI,


What are the implications of OROP?

0 Answers   State Bank Of India SBI,


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)