Entry load in mutual funds, historical note

Tue, 12 May 2026 00:00:00 +0000

Entry load (also called front-end load or sales load) was a one-time charge deducted from an investor’s purchase amount before mutual fund units were allotted, effectively reducing the number of units received for a given investment. The charge was expressed as a percentage of the investment amount and was primarily used to compensate mutual fund distributors for their sales effort. SEBI abolished entry loads on all mutual fund schemes in India with effect from 1 August 2009, making it a purely historical instrument.

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Entry load in mutual funds, historical note