Ask Value Research

Entry and Exit Loads

Rakesh Kumar wants to know about the entry & exit loads & how he should choose funds depending on them...

What should be my strategy regarding entry and exit load while choosing a fund to invest? What should be the maximum permissible limit?
-Rakesh Kumar

One should be aware of all costs before investing. The load is also a cost. Entry load applicable only to equity funds is avoidable if you invest directly and not through a distributor. The exit load is not avoidable as it generally a contingent load depending on your tenure of stay in a fund. You cannot choose the amount of load you pay. So you should be aware of the load and plan your investment accordingly.

This article was originally published on January 27, 2009.

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