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How does the concept of entry load work in case of unit purchases?

April 26, 2017Case concept load purchases

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How does the concept of entry load work in case of unit purchases?

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An entry load is an additional cost that an investor pays at the point of entry. Assume that your proposed investment is Rs.10,000/-. Also assume that the current NAV of the fund is Rs.12.00 and that the entry load is Rs.0.50. Then you will receive 10000/12.50 = 800 units. For detailed explanation of entry load, refer our mutual fund glossary.