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Strategic Financial Management · Mutual Funds

Entry Load, Exit Load, Sale Price and Repurchase Price

Updated 11 October 2026 · Fact-checked

A load is a charge on units, expressed as a percentage of NAV. The sale price is what you pay to buy a unit: NAV + entry load. The repurchase price is what you receive when you sell: NAV − exit load. Calculate NAV first, then apply the load percentage.

Understand Entry and Exit Load, Sale and Repurchase Price

A mutual fund unit is bought and redeemed at prices linked to its Net Asset Value (NAV), the value of one unit's share of the fund's net assets. A load is a charge that sits on top of, or is deducted from, that NAV.

An entry load (front-end load) is charged when you buy. It raises the sale price, the price at which the fund sells a unit to you. An exit load (back-end load) is charged when you redeem. It lowers the repurchase price, the price at which the fund buys the unit back from you.

The fund's operating costs are different. The expense ratio is the annual cost of running the scheme (management fee, registrar, marketing and similar costs) as a percentage of average net assets. It is deducted from the scheme's assets on an ongoing basis, so it is already reflected in the NAV. You do not add it again when finding sale or repurchase price.

Exam questions usually give the NAV, or the data to compute it, and a load percentage. Sometimes they work backwards: given the sale or repurchase price and the load, find the NAV. Under current SEBI rules, entry load is not charged to investors in mutual fund schemes, but the topic is still tested as a computation, so apply whatever load the question states.

The key idea: loads are applied on NAV, not on the price after the other adjustment. The sale price is always at or above NAV, and the repurchase price is always at or below NAV.

Key rules to remember

Sale price (with entry load)
Sale price = NAV × (1 + entry load %)
Price the investor pays per unit. If there is no entry load, sale price = NAV.
Repurchase price (with exit load)
Repurchase price = NAV × (1 − exit load %)
Price the investor receives per unit. If there is no exit load, repurchase price = NAV.
NAV from sale price
NAV = Sale price ÷ (1 + entry load %)
Use when the question gives the sale price and asks for NAV.
NAV from repurchase price
NAV = Repurchase price ÷ (1 − exit load %)
Use when the repurchase price is given.
NAV per unit
NAV = (Market value of investments + other assets − liabilities) ÷ Units outstanding
Liabilities include accrued expenses. Expenses charged under the expense ratio reduce net assets.
Expense ratio
Expense ratio = Annual scheme expenses ÷ Average net assets × 100
Ongoing cost, already inside NAV. Not a load.

How to solve Entry and Exit Load, Sale and Repurchase Price questions

Use this order for any load question. It prevents the usual percentage errors.

  1. 1Find the NAV per unit. If it is not given, compute net assets (investments at market value + other assets − liabilities and accrued expenses) and divide by units outstanding.
  2. 2Check whether expenses for the period are still unpaid or unrecorded. If the question says so, deduct them from net assets before computing NAV.
  3. 3Identify the load: entry (on purchase) or exit (on redemption), and whether it is a percentage of NAV or a fixed amount.
  4. 4Apply the load to NAV: sale price = NAV × (1 + entry load); repurchase price = NAV × (1 − exit load).
  5. 5If the question works backwards, divide by (1 ± load) to recover NAV. Do not simply subtract the percentage.
  6. 6For investor returns, use the actual price paid and price received, then compute units, gain and percentage return on the amount invested.
  7. 7State the final figures with units and rupees, and add one line of interpretation if asked.

Quickest way: Multiply by 1.0x or 0.9x

When to use it: When NAV is already given and only the sale or repurchase price is required.

  1. Convert the load into a multiplier: 2% entry load = ×1.02; 1% exit load = ×0.99.
  2. Multiply the NAV by that multiplier.
  3. For reverse problems, divide by the same multiplier.
  4. Check: sale price must be above NAV, repurchase price below NAV.

Common mistakes in Entry and Exit Load, Sale and Repurchase Price

  • Subtracting the load percentage when working back to NAV from the sale price.

    The load is on NAV, not on the sale price, but students apply it to the sale price.

    Fix: Divide: NAV = sale price ÷ (1 + load). Check by multiplying back.

  • Adding the entry load to the repurchase price or deducting the exit load from the sale price.

    Students mix up which load belongs to which transaction.

    Fix: Entry load goes with buying (sale price). Exit load goes with redeeming (repurchase price).

  • Adding the expense ratio to the sale price.

    Expense ratio sounds like another charge on the investor.

    Fix: Expense ratio is charged to the scheme and is already reflected in NAV. Only deduct accrued expenses when computing NAV.

  • Ignoring liabilities or accrued expenses when computing NAV.

    Students focus on the investment portfolio value alone.

    Fix: Always take net assets: investments + other assets − liabilities and unpaid expenses.

  • Computing investor return on NAV instead of actual prices paid and received.

    Students forget the loads change the investor's cost and proceeds.

    Fix: Use sale price as cost and repurchase price as proceeds, then add any dividends received.

Worked examples

Example 1

A scheme has net assets of ₹50,00,000 and 4,00,000 units outstanding. Entry load is 2% and exit load is 1%. Find the NAV, the sale price and the repurchase price per unit.

Show the solution
  1. NAV = ₹50,00,000 ÷ 4,00,000 = ₹12.50.
  2. Sale price = 12.50 × 1.02 = ₹12.75.
  3. Repurchase price = 12.50 × 0.99 = ₹12.375, that is ₹12.375 per unit.

Answer: NAV ₹12.50; sale price ₹12.75; repurchase price ₹12.375.

Example 2

An investor buys units at a sale price of ₹20.40 which includes a 2% entry load. After a year the NAV is ₹22.00 and the exit load is 1%. Ignoring dividends, find the investor's percentage return.

Show the solution
  1. Cost per unit is the sale price paid: ₹20.40. (Implied NAV at purchase = 20.40 ÷ 1.02 = ₹20.00.)
  2. Repurchase price = 22.00 × 0.99 = ₹21.78.
  3. Gain per unit = 21.78 − 20.40 = ₹1.38.
  4. Return = 1.38 ÷ 20.40 × 100 = 6.76% (approximately).

Answer: Return is about 6.76%, lower than the 10% NAV growth because of the loads.

Exam tips

  • Read whether the question gives NAV, sale price or repurchase price, and start from the right one.
  • In MCQs, test options: sale price must exceed NAV and repurchase price must be below NAV, which removes wrong options quickly.
  • For return questions, always use sale price as cost and repurchase price as proceeds, and show this line in your answer.
  • Show NAV computation separately; marks are often allotted for net assets and for the final NAV.
  • Keep three decimals if the price is not round, and round only at the end.

Practice questions from Mutual Funds

Entry and Exit Load, Sale and Repurchase Price in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Entry and Exit Load, Sale and Repurchase Price: frequently asked questions

What is the difference between entry load and exit load?

Entry load is charged when you buy units and increases the price you pay. Exit load is charged when you redeem and reduces the amount you receive. Both are a percentage of NAV.

How do I calculate the sale price of a mutual fund unit?

Multiply the NAV by (1 + entry load percentage). For example, NAV ₹10 with a 2% entry load gives a sale price of ₹10.20.

Is the expense ratio part of the load?

No. The expense ratio is the scheme's annual running cost as a percentage of net assets and is already reflected in the NAV. Loads are separate charges on buying or redeeming units.

Do I still need to study entry load for the exam?

Yes. Current SEBI rules do not allow entry load for investors, but questions can still state one for computation. Apply the load given in the question.