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.