How are you charged when you take out money in a mutual fund?

Answer 1

There are following charges when you take out money from a mutual fund:

exit load: it depends upon scheme features which describes how much exit load will be charged and when(time horizon of scheme holding period) nowdays after 1 years no exit load is charged. But do confirm by reading mutual fund account statement deeply.

Securities transaction tax: it is charged whenever you withdraw money from mutual fund it is approx. 0.025% of fund value.

Other charges is short term tax and long term tax. Short term tax on gain is 15% as per fy 2011-12 and long term capital gain is nil. Long term will be considered when we hold our investment for more than one year.