What does Exit load mean?
Exit Loads are minor penalties imposed by the AMCs to discourage premature withdrawals/redemption in Mutual Funds.
The exit load varies from one Mutual Fund to another, i.e., all funds need not have exit loads, and they aren’t the same for every scheme. Some mutual funds do not have exit loads at all. You can find the exit load on any mutual fund on Coin and from the AMC’s factsheet available on their website. You can read this article to understand how to read and understand the mutual fund fact sheet.
Exit load is calculated for each investment/SIP made, according to the values (of Exit Load) mentioned in the factsheet for the month when the scheme has been purchased.
For example, if an AMC has a 1% exit load if redeemed within 365 days, 1% of the latest NAV is deducted from your redemption amount.
Read this post on TradingQ&A to learn more about exit loads.