Multiple choice

If an investor switches from one scheme to another scheme, within the same mutual fund

  1. no load is charged

  2. only entry load is charged in the new scheme

  3. only exit load is charged in the old scheme

  4. depends on AMC
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Load charges on switching between schemes within the same mutual fund depend on the AMC's specific policies. Some AMCs charge exit load from the source scheme, others may charge entry load in the target scheme, and some offer load-free internal switches. There is no universal rule that applies across all mutual funds.

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