New Delhi, June 2 -- As a mutual fund investor, it's essential to understand the key charges associated with these investments to make informed decisions. One such charge is the exit load.

Exit load is a fee charged by asset management companies when an investor makes a partial or full withdrawal from a mutual fund within a specified period. This charge is typically imposed to discourage early redemptions - that is, withdrawing funds before the completion of the lock-in period, which is the minimum duration for holding the investment.

Therefore, an exit load can help reduce the number of early withdrawals from mutual fund schemes. It is typically charged as a percentage of the Net Asset Value (NAV), which represents the market value of ...