Even though most people may understand this very well, let us define some terms at the outset so that there is no confusion.
This is charged by the fund house (AMC) to the scheme (investors money). Investors want this to be the lowest. (Conversely AMCs “may” want these to be the highest).
Entry / Exit Load Type 1
Although there is no financial term like Type 1, this is my own creation for simplicity sake. In this type, the entry and exit load (fees) go to the AMCs or Distributors. This is in addition to the expense ratio above. Obviously investors hate them.
These type of loads have been ELIMINATED in India. This elimination was not without its own share of controversies. More on this later.