It is the fee levied by the fund house to discourage investors from early withdrawals.
Typically, in most MFs, AMCs levy an exit load of 1 percent of the Net Asset Value or NAV, if the units get sold within a year of purchase. There is no exit load if we sell units off after a year of holding them.
Of course, exit loads vary across fund houses and products. ln debt-related MFs, including liquid funds, the period in which exit load is valid can be just one day since purchase, because the maturity period, itself, is short.