What is a Load?
Ans: Load charges are imposed by the Fund Houses to investors to cover the expenses related to distribution/sales/marketing etc. of their schemes is called “Load”. The Load charged to the investor at the time of entry into a scheme is called Entry Load. The Load that the investor pays at the time of exit from a scheme is called Exit Load.
The charge collected by a Mutual Fund from an investor for selling the units or investing in it. When a charge is collected at the time of entering into the scheme it is called an Entry load or Front-end load or Sales load. The entry load percentage is added to the NAV at the time of allotment of units. An Exit load or Back-end load or Repurchase load is a charge that is collected at the time of redeeming or for transfer between schemes (switch). The exit load percentage is deducted from the NAV at the time of redemption or transfer between schemes.
