Regarding exit load

Hi , Suppose there is a MF with exit load of 1% and if some one exits the MF before 6 months , he ll be charged 1% of eit load.
My Doubt is that 1% of the money is a profit to the Mutual fund people…will that money(profit) add up to the NAV of the MF or that will go to the MF’s manager/head.

Hi @Mani_Kanta - If suppose that 1% equals to Rs. 1000, following treatment is given in MF books

1 - Out of Rs. 1000, Rs 152.54 (18% GST) will be paid to government in the form of tax and
2 - Remaining Rs. 847.46 shall be credited back to the scheme as REALIZED INCOME (Add up to the NAV).