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Monday, September 24, 2012

Mutual Fund Load - Entry Load and Exit Load

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This is the price of buying a unit.
 
Most funds sell units at a premium to its underlying net asset value, and purchase them at the net asset value. When the fund company charges a load when it sells units, it is called entry load.
 
When it charges a load at the time of buying the units back from an investor, it is called exit load.

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