One redemption, two different layers
Illustrative example: 100 units have an applicable NAV of ₹50. Their value is ₹5,000. If an applicable exit load is 1%, a simplified load deduction is ₹50, leaving ₹4,950 before tax or other adjustments. The 1% is an invented rate, not a standard charge across schemes.
Do not subtract the ongoing expense ratio again from that NAV value. The NAV is already calculated after scheme expenses. The exit-load calculation concerns the redemption terms, which answer a different question.
Dates and allotments matter
A monthly investment creates purchases on multiple dates. Consequently, units in one statement can have different ages when a redemption occurs. A single remembered date may not be enough to establish the treatment of the whole holding.
Read the applicable scheme terms and transaction records. A load schedule can contain conditions, time periods or permitted quantities; using only the headline percentage can miss important details. This guide does not assume any particular scheme’s current schedule.
Keep a simple cost map
Record recurring product expenses separately from redemption charges and tax effects. Then check which units a proposed redemption would involve and what documents govern them.
A zero exit load does not mean the investment has no risk or ongoing cost. Likewise, a high historical return does not tell you what charge applies to a transaction today. The charge, the risk and the return are separate facts to verify.