What is entry load and exit load?
What is entry load and exit load?
Entry Load is a percentage of fee levied on the purchase of a mutual fund scheme. The levying of entry load reduces the investors’ investment. Exit load is levied as a percentage amount when the investor wishes to exits or redeem one’s mutual fund investments before the otherwise stipulated period.
What is exit load with example?
For instance, if the exit load levied on a one-year scheme is 2\% and is redeemed within 4 months which would much before the agreed period of investment. So, here an exit load comes into the scene. If the NAV of the fund is Rs. 40 during the time of redemption, the exit fee charged would be 2\% of Rs.
What is a good exit load in mutual fund?
How to Calculate Exit Load in Mutual Funds
| Exit Load | 1\% of [(100 x 110) + (60 x 110)] = Rs 176. |
|---|---|
| The amount credited to the investor | 17600 – 176 = 17424 (Total NAV – Exit fee) |
| For the second investment of March 2017 | 1\% of (60 X 115) = Rs. 69 |
What is NFO period?
Definition: A new fund offer (NFO) is the first time subscription offer for a new scheme launched by the asset management companies (AMCs). After the NFO period, investors can take exposure in these funds only at the prevailing NAV.
When can I exit sip?
A SIP would be automatically terminated when the ECS payments are not made for a period of three months. Inform the mutual fund house and the bank from which the payments are made towards SIP. Fill the relevant form issued by the asset management company (AMC).
Which DSP fund is best?
List of Dsp Blackrock Mutual Funds in India
| Fund Name | Category | 1Y Returns |
|---|---|---|
| DSP Equal Nifty 50 Fund | Other | 33.1\% |
| DSP Tax Saver Fund | Equity | 35.6\% |
| DSP Natural Resources and New Energy Fund | Equity | 48.3\% |
| DSP Small Cap Fund | Equity | 58.4\% |
What is an entry load and an exit load?
Entry load can be said to be the amount or fee charged from an investor while entering a scheme or joining the company as an investor. Exit load is a fee or an amount charged from an investor for exiting or leaving a scheme or the company as an investor. Generally, an entry load is collected to cover costs of distribution by the company.
What is exit load in mutual funds?
Exit load is a fee charged when you redeem your investments from a mutual fund. Whenever you decide to sell the units of mutual funds you own, an exit load may or may not be charged to you. The exit load is calculated as a percentage of the amount being redeemed. For example: Let’s say the amount being redeemed is ₹1 lakh.
What are the exit load on liquid funds?
There is no entry or exit load on liquid funds. This means that the investors can redeem the investments whenever they want and the money will be credited to their bank accounts the very next day. Debt funds may or may not have an exit load.