Load is a charge collected by Mutual funds from investors whenever they buy or sell units.
Entry load refers to the fee paid to the asset management company at the time of investing in Mutual Fund units. In accordance with the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009, individuals need not pay any entry load while investing in Mutual Fund either in the form of fresh purchases, additional purchases, Systematic Investment Plan, Systematic Transfer Plan with effect from August 01, 2009
The non refundable fee paid to the Asset Management Company at the time of redemption/ transfer of units between schemes of mutual funds is termed as exit load. It is deducted from the NAV(selling price) at the time of such redemption/ transfer. There are certain scheme categories that charge exit load if the money is withdrawn within a particular period while some schemes do not levy exit load. Schemes that do not charge any load are called No Load Schemes.