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Ch.6 · ARN and EUIN Rules · hard

What is the maximum exit load that a mutual fund can charge as per SEBI regulations?

0% of students got this wrong

EXPLANATION

SEBI prescribes that the exit load charged by a mutual fund scheme cannot exceed 2% of the applicable NAV. Most equity schemes charge 1% exit load for redemptions within 1 year. Exit load proceeds go back into the scheme corpus, not to the AMC.

A.1%

B.2% [✓ Correct]

C.3%

D.SEBI does not prescribe a maximum exit load

EXPLANATION

SEBI prescribes that the exit load charged by a mutual fund scheme cannot exceed 2% of the applicable NAV. Most equity schemes charge 1% exit load for redemptions within 1 year. Exit load proceeds go back into the scheme corpus, not to the AMC.

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