Ch.2 · Mutual Fund Structure Basics · easy
What is the concept of 'exit load' in a mutual fund?
0% of students got this wrong
EXPLANATION
Exit load is a charge deducted from the redemption proceeds when an investor redeems units before a specified holding period (e.g., 1% if redeemed within 1 year for equity funds). It discourages short-term trading and compensates the scheme for transaction costs. Entry loads were banned by SEBI in 2009.
Practising Chapter 2 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.