as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
unable to understand logic behind why there is no exit load on liquid fund
user
imagine that a fund had a large exit load that declined over several years. if you wanted to sell some or all of your investment in that fund you would face a large fee, unless you held it a long time. you would be hesitant to sell because waiting longer would save you money. that is the exact opposite of a liquid investment.  therefore the ideal level for a liquid fund is to have zero exit load.
assistant