Mutual funds typically levy exit load to discourage investors from hopping in and out of schemes.
Different mutual fund schemes have different periods in which they levy exit loads. The information would be available in the scheme information document or SID.
Exit load is typically charged as a small per cent of the NAV prevailing at the time when you sell your schemes.
How is it calculated?
Suppose, you are selling today 500 units of an equity scheme you had purchased six months ago. The scheme charges an exit load of 1 % if you redeem the units within one year.
Let us assume the NAV is Rs 50. You will get Rs 49.50 per unit [Rs 50 – Rs .50 (1% of Rs 50)] on redemption. The total amount which you will get will be Rs 24,750 (Rs 49.50 X 500 units). That means you have paid an exit load of Rs 250 (Rs .50 per unit).