What you pay to get in and out
No entry load, watch the exit
Getting in costs nothing extra, but getting out early can. This short lesson closes the pricing module: buy at NAV, mind the exit load, and never forget the quiet yearly cost.
This lesson teaches a concept for the NISM Series V-A exam. It is education, not financial advice.
- 1
There is no entry load in India, so you buy units at NAV, with nothing added on top.
- 2
Some funds charge an exit load if you sell within a set period, which reduces what you get back.
- 3
The exit load is a percentage of the redemption value, deducted before you are paid.
- 4
Beyond loads, the yearly expense ratio quietly reduces returns over the long run.
A 1% exit load on redeeming ₹50,000 within a year takes ₹500, so you receive ₹49,500 before tax.
Practice
🔥 0 streakReal exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.
Entry load on mutual funds in India is:
An exit load is charged when you:
An exit load is deducted from:
Even with no load, long-run returns are reduced by:
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Education for the exam, not financial advice. Answers can be wrong, so confirm figures against the workbook.