Exit Load Period

The exit load period is the duration after an investor's purchase of mutual fund units during which a redemption fee (exit load) will be charged if the units are sold. The exit load is expressed as a percentage of the redemption value and is designed to discourage short-term redemptions, ensuring fund stability and protecting long-term investors from the impact of sudden large outflows. In India, SEBI regulations cap exit loads and require funds to credit all exit load proceeds back into the scheme's NAV rather than retaining them as income. After the exit load period expires, units can be redeemed at full NAV without any additional charges.