Lesson 31 of 50 for advisers · Exit loads · 3 min read · Reviewed 13 Nov 2026
Under SEBI’s Mutual Funds Regulations, 2026, an open-ended scheme’s exit load may not exceed 3% of NAV. The load, net of GST, goes back into the scheme. There is no exit load on bonus units, reinvested dividends, or a switch between the regular and direct plan of the same scheme.
An exit load is a fee charged when units are sold back to the fund. Under the 2026 Regulations it may not exceed 3% of NAV for an open-ended scheme.
The load is paid back into the scheme, after GST is taken out of it. It may not vary with the amount invested.
There is no load on bonus units, reinvested dividends, or a switch between the regular and direct plan of one scheme. A higher load applies only to money invested after the change.
Liquid funds charge a graded load on money taken out within 7 calendar days, at rates AMFI sets with SEBI.
Key idea: Check the load structure in the scheme document before an SWP or switch: each instalment is a redemption.
Try the short quiz on this page to check what stuck.
No scheme may charge an entry load.
SEBI sets no special rule. It depends on the scheme’s load structure, so check the scheme information document.
The sale price is the NAV less the load: NAV × (1 − exit load).
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