Home | Get Ahead | Money | Dictionary

Loads

Mutual funds charge either entry or exit loads.

An entry load is levied when you buy the units of a fund.
Letís say you are investing Rs 10,000 in a fund that has a 2% entry load. So out of your investment, Rs 200 will be deducted as a load and the balance will be invested.

An exit load is levied when you sell the units of a fund.
Letís say there is an exit load of 2.5%. If you are selling your units and it amounts to Rs 15,000, then the fund will deduct Rs 375 and the balance will be returned to you.

Article Tools Email this article
Write us a letter



Share your comments




Copyright © 2004 rediff.com India Limited. All Rights Reserved.