If an investor has redeemed before 1 month or a specific time of the mutual fund scheme then a minimum 1% exit load may have to be borne.
Maximum time of exit load is 1 month to 1 Year. If You redeem units before this time exit load may be applied.
Suppose you have started SIP for 2 years. After 2 year you want to redeem all units.
You thought my mutual fund offered exit load free after 12 months, But it's not, Let me tell you how.
You started SIP on 1 Jan 2022 and you want to redeem all units after 2 years, Your units from 1 Jan 2022 to 31 December 2022 are older than one year if you are redeeming after 31 Dec 2024.
If you want to redeem units, which has been invested after 1 Jan 2023 are not 1 year old, they will be older after 1 Jan 2024.
In this case, you have to bear the charge of Exit load.
Mutual funds calculate the age of individual units separately. If you invest in Jan 2024 your 1st SIP will mature in Jan 2025 and if you invest in another SIP in Feb 2024 Your SIP will Mature in Feb 2025.