Many retail investors panic at the mention of exit load or doubt the profitability of systematic investment plans (SIPs). But according to CA Nitin Kaushik, these concerns are often misplaced if one invests with discipline and a long-term horizon.

In a detailed post on X (formerly Twitter), Kaushik broke down the mechanics of mutual funds, exit load, and SIP returns with simple math and real-world examples. Advertisement

What is Exit Load? Kaushik explained that exit load is a small fee charged by mutual funds when investors redeem their units before a specific holding period — usually 12 months. “It discourages short-term trading and protects long-term investors,” he wrote. For equity funds, the exit load is typically 1% if redeemed within a year. For example, redeeming ₹10 lakh befor

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