Costs, Tax & Regulation
Exit Load
Charge on early redemption — typical structures by category.
Updated 27 September 2026 · SEBI rules as of 2026
Equity (typical)
1% if redeemed within 1 year
Costs, Tax & RegulationOverview
An exit load is a percentage of NAV charged when you redeem within a specified period, discouraging short-term churn. It is credited back to the scheme. Loads vary by scheme — check the SID/KIM.
| Particular | Details |
|---|---|
| Equity (typical) | 1% if redeemed within 1 year |
| Liquid funds | Graded 0.0070% → 0.0045% for days 1–6, nil from day 7 |
| Overnight / many debt | Nil |
| ELSS | Nil (but 3-year lock-in) |
| Switches | Treated as redemption |
Example
| Case | Load | Net |
|---|---|---|
| Redeem ₹1,00,000 within 1 year at 1% load | ₹1,000 load | ₹99,000 received (before tax) |
Frequently asked questions
Is exit load applied to SIPs?
Yes — each instalment is checked separately (FIFO).
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.