What are Entry/Exit Loads and CDSC ?
Charges levied by fund managers to the investors to cover distribution / sales / marketing expenses are often called loads. The load charged to an investor at the time of an investor’s entry into a scheme / fund, by deducting a specific amount from his initial contribution is called an Entry load. The load charged to an investor at the time of an investor’s exit from a scheme / fund, by deducting a specific amount from his redemption proceeds is called an Exit load. Some funds may also charge different amounts of loads to the investors, depending upon how many years the investor has stayed with the fund; the longer the investor stays with the fund, less the amount of ‘exit load’ he is charged. This is called ‘Contingent Deferred Sales Charge’ (CDSC).
