what is entry load and exit load in mutual funds?

Answer 1

A load is a fee, expressed as a percentage.

A 3 percent entry load means that if you give them $1000, they will pocket $30 and put $970 into your fund account.

If there is a 4 percent exit load, then when you call them and ask them to sell $1000 of your funds and send you a check, they will keep $40 as a managment fee.

There are "no load" mutual funds. For example, I use the T. Rowe Price family of mutual funds, which is a family of mutual funds headquartered in Baltimore, MD.

Answer 2

Entry and Exit charges are similar to Brokerage you give while transacting in Stocks. This is the incidental expense charged to the investor at the time of Entry or Exit from a Scheme.
In India these charges depends on type of plan and the time of entry or exit. There is a range of NIL charge to as high as 4% charge; again you will have to refer to the offer document of the scheme for the exact load structure.
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Answer 3

Mutual fund companies do no longer do something for loose. in the event that they do decrease get right of entry to/go out lots, then you certainly're paying a great-extreme hidden maintenance value. Do your self a desire, flow forward and purchase A stocks and pay the get right of entry to load up front. you will come out greater useful interior the top. by no skill purchase B stocks, and purely purchase C stocks while you are going to desire the money w/interior the subsequent year or so.

Answer 4

I agree