Exit Load
✓ Last verified 14 Sep 2026
The short version
Exit load is a fee charged if you redeem (sell) mutual fund units before a specified minimum holding period - designed to discourage short-term in-and-out trading of what's meant to be a longer-term investment.
Many equity mutual funds charge an exit load - commonly around 1% - if units are redeemed within a set period (often 1 year) of purchase, dropping to zero after that. It's a deterrent against short-term trading in funds meant for long-term investing, not a punishment for legitimate long-term investors. Checking a fund's exit load and holding-period terms before investing avoids a surprise deduction if circumstances force an early withdrawal - a detail worth knowing upfront, not after deciding to exit.
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