Ch.7 · Total Expense Ratio Limits · easy
What is an 'exit load' and what is the maximum exit load permitted by SEBI?
0% of students got this wrong
EXPLANATION
Exit load is a redemption charge expressed as a percentage of the applicable NAV, deducted from proceeds if the investor exits before a specified holding period. SEBI caps exit load at a maximum of 2% of NAV. Most equity schemes charge 1% for redemptions within 1 year. Exit load proceeds go back into the scheme corpus, benefiting remaining investors.
Practising Chapter 7 one question at a time?
Try the full chapter — 80 questions, tracked score, weak area breakdown.