Investing
Exit load
A small penalty fee charged if you withdraw from a fund before a set period, often one year.
An exit load is a fee, usually 1%, deducted if you sell your fund units too soon after buying them.
It exists to discourage quick in-and-out trading, which hurts long-term investors in the fund.
Always check the exit load period before investing, especially for money you might need at short notice.
For example
Redeem an equity fund within 12 months and a 1% exit load on a ₹1L withdrawal costs you ₹1,000. Hold longer and it becomes zero.