Request a callback  
Please enter the below details to start your investment journey

By clicking on Invest Now or Start an SIP, you agree to the Terms and Conditions of Shriram AMC and authorize our representatives to contact you via phone, email, SMS, WhatsApp regarding your application. This will override any NDNC registration you have made.

Confrim OTP

Having problem receiving OTP? or Need assistance?

+919875630869

Mobile number verified successfully.

Lorem ipsum dolor sit amet consectetur adipisicing elit. Nisi ratione tempore, illo molestiae neque accusamus corporis suscipit commodi aliquam ipsum porro.

What is Exit Load in a Mutual Fund?

An exit load is a fee or charge levied by mutual funds when investors redeem or sell their units before a specified period. This fee is typically imposed to discourage short-term investments and to cover the administrative costs associated with early withdrawals.

The exit load is generally calculated as a percentage of the Net Asset Value (NAV) at the time of redemption. This charge varies across different mutual fund schemes.
 

Types of Exit Load in a Mutual Fund

How to Calculate Exit Load in a Mutual Fund

Calculating the exit load in a mutual fund is crucial for understanding the net redemption value of the investment. The calculation involves determining the percentage of the NAV that will be deducted as an exit load.


Consider an investor who invested ₹40,000 in a mutual fund scheme in January 2021, purchasing units at a NAV of ₹100, resulting in 400 units. The mutual fund charges an exit load of 1% if the units are redeemed before one year. If the investor decides to redeem the units after four months when the NAV is ₹90, the exit load calculation would be as follows:


Initial Investment: ₹40,000

Units Purchased: ₹40,000 / ₹100 = 400 units

NAV at Redemption: ₹90

Exit Load: 1% of (400 units x ₹90) = ₹360

Gross Redemption Value: 400 units x ₹90 = ₹36,000

Redemption Value: ₹36,000 - ₹360 = ₹35,640


Thus, with an initial investment of ₹40,000, the investor would receive ₹35,640 after deducting the exit load of ₹360, assuming they redeemed the units after four months


 

Explore Shriram Mutual fund

Shriram Flexi Cap Fund

Invest now

Shriram ELSS Tax Saver Fund

Invest now

Shriram Aggressive Hybrid Fund

Invest now

Shriram Balanced Advantage Fund

Invest now

Shriram Overnight Fund

Invest now

Shriram Multi Asset Allocation Fund

Invest now
Back to top Back to top