What is the difference between contigent defered sales load and an exit load?
Contingent Deferred Sales charge (CDSC) is a charge imposed when the units of a fund are redeemed during the first few years of ownership. Under the SEBI Regulations, a fund can charge CDSC to unit holders exiting from the scheme within the first four years of entry. Exit load is a fee an investor pays to a fund whenever he redeems his/her units. As per SEBI regulations, the maximum exit load applicable is 7%. There is a further stipulation by SEBI that the entry load and exit load put together cannot exceed 7% of the sale price.
