I was able to understand SIP. what it is all about. But, i didn't understand the Entry and Exit Load. How they are calculated and how they cost more over a longer period of time. any clarification plz?
RE:SIP is great but I can't understand Load
by Investment Opportunity on May 04, 2007 01:16 PM Permalink
Hi Brajesh, Mutual Fund Companies add sales charges (or called loads) on their funds (entry load and/or exit load) to compensate for distribution costs. Funds that are purchased without a sales charge are called no-load funds. Entry load is charged at the time an investor purchases the units of a Mutual Fund scheme. Exit load is charged at the time of redeeming (or when exiting the Mutual Fund scheme). The entry / exit load percentage is deducted from the NAV. Swapan mwealth@rediffmail.com
