It is a mutual fund series that has no commission to purchase but is subject to a fund company charge upon redemption. Typically deferred load charges start at around 5% to 7% in the first year, and will decline towards 0% over the next 5 to 7 years. Also known as DSC funds, back end funds or rear load funds.
This is the sales commission charged when you sell shares from a back-end fund.
A sales charge or commission paid when an individual sells an investment, such as a mutual fund or an annuity. Intended to discourage withdrawals. also called redemption fee or deferred sales charge. see also front-end load.
in advertising scheduling, allocating the major part of an advertising or promotion budget expenditures to the late segment of a campaign; see front-end load.
A sales charge some firms levy when you sell your investment. The fee compensates the brokerage. Some mutual funds charge back-end loads instead of front-end loads. See deferred load, deferred sales charges.
A sales charge that is imposed when investors redeem shares of a mutual fund. Also known as the contingent deferred sales charge (CDSC), a back-end load generally declines over time. For instance, if you sell the mutual fund shares after one year, you may owe a 5% charge, but if you hold for three years, it may decline to 2%. Unfortunately, the cumulative 12b-1 fee always compensates any possible loss the fund company might incur by long-term shareholders holding onto their shares until the stated load is 0%. Paying the front-end load is often the better deal.
An option when purchasing a mutual fund. At the time of the purchase, the buyer pays no sales commission. When the units are sold the fee may be required
A load paid when you redeem your shares. Most funds drop the load if you hold for a specified period of time, usually several years.
the sales commission on mutual fund transactions that is charged at the time of redemption or sale, rather than at the time of purchase. The latter is a front-end load.
A charge an investor pays when withdrawing money from an investment. It is designed to discourage withdrawals. Back-end loads typically decline each year a shareholder remains in a fund.
Also known as a Contingent Deferred Sales Charge. Charge subtracted from an investor's assets at the time of redemption, generally if redemption occurs within approximately five years from investment. Charges which can be imposed decrease the longer assets are held.
A surrender charge deducted from the cash value in some variable life insurance products before the remaining cash value is paid to the policyowner when the policy is surrendered. Most such policies have a decreasing back-end load that generally disappears completely after a certain number of years.
A fee paid by an investor when taking money out of an investment.
a charge you pay when you sell your units
a fee the fund charges when you sell -- or redeem -- your shares
The sales charges assessed when the investor removes money from the investment. Generally declines with the time the investors own the shares. Usually starts out at 6% for the first year and gets smaller each year thereafter until it reaches zero (usually in the sixth or seventh year of owning the investment). Also called a deferred load, deferred sales charge or exit charge. Back-end loads are used primarily to pay a commission to the broker/dealer who sold the fund to the investor. Often coupled with 12b-1 fees.
Mutual funds which charge a sales fee when you sell the fund, rather than when you initially make your purchase. Hence, the charge is called a back-end load, rear-end load or sometimes a contingent deferred sales load. In many cases, the sales fee goes to the broker selling the fund, the fund company or a combination of the two. Vanguard has many funds which charge back-end loads. While the money from the load is returned to the fund and counted as part of its net asset value, the net impact on the investor is the same as any other back-end load; your assets are reduced by the amount of the load.
A charge levied on investors when investment fund units are redeemed. Funds with back-end loads are sometimes called "B" shares. This fee is sometimes called a contingent deferred sales charge, or CDSC. It is generally much higher than a front-end load. However it does decline incrementally to zero over time, and usually disappears in five to eight years. Funds which have back-end loads usually charge 12b-1 fees, which are typically higher than for front-end load funds. The "B" shares can be converted into "A" shares after the load period has expired.
A sales commission or fee charged when mutual fund units are redeemed.
A kind of redemption charge that an investor has to pay for withdrawing his money from the mutual fund. It is basically imposed to discourage investors from exiting the fund. It is also popularly referred to as an Exit Load.
A mutual fund where you pay a commission when you sell your shares
A sales fee you pay when you sell units of a mutual fund, also called a deferred sales charge or DSC. It's a percentage applied to the units' withdrawal value. The percentage you pay is based on a 6-7 year sliding scale that starts out high (about 6%) in year one and declines to zero in the 6th or 7th year.
A charge an investor pays when withdrawing money from an investment. Back-end loads typically decline each year a shareholder remains in a fund. Also known as CDSC (contingent deferred sales charges) or surrender charges.
Also known as a contingent deferred sales charge, it is a charge made upon withdrawal of funds from an investment. Most commonly used to discourage investors from cashing out of their mutual funds and annuities.
A sales charge levied at the time of redemption. It declines annually to zero over an extended holding period, as described in the prospectus.
(Sales Charge) - A back-end load (sometimes referred to as a contingent deferred sales charge) is usually associated with Class B shares of a mutual fund. It is a sales commission, deducted from the net asset value of the shares redeemed, t is assessed at the time you sell shares you own. It's computed as a percentage of the total selling price, but is generally not assessed on any increase in the value of your shares, or any reinvested dividends or capital gains. As an example, if you sell 1000 shares at a share price of $30 with a 1% back end load, you'll receive $30,000 less a fee of $300, or $29,700. The maximum amount of the back end load, which usually declines over time, and the period over which the load is imposed, are contained in the front of your fund's prospectus, or ask your broker.
A sales charge levied when you sell your unit trust. Also called redemption fee or realisation charge. See also front-end load.
Refers to charges which are imposed upon the redemption or liquidation of an investment position. Often these charges are on a sliding scale. Sometimes, these charges are viewed as early withdrawal penalties. They are called back-end because they occur at the end of the investment process.
A sales fee charged by some mutual funds when an investor sells fund shares. Also called a contingent deferred sales charge.
A charge for withdrawing shares from a mutual fund.
(Also called a contingent deferred sales charge.) This charge is assessed when you redeem shares of a mutual fund within a relatively short amount of time (like 4-5 years) after purchasing them.
a sales charge (also known as a "deferred sales charge") investors pay when they redeem (or sell) mutual fund shares, generally used by the fund to compensate brokers.
Funds with back-end loads are sometimes called "B" shares. These funds impose a contingent deferred sales charge, or CDSC, which is paid at the time of redemption. This fee is generally much higher than a front-end load. The good news is that it declines incrementally to zero over time, and usually disappears in five to eight years. These funds charge 12b-1 fees, which are typically higher than for front-end load funds. These funds may convert "B" shares into "A" shares after the load period has expired.
A fee that an investor pays when redeeming (withdrawing) funds from an investment--also called "deferred sales charge." The fee is usually dependent on how long the investment is held--the longer the time period, the smaller the fee. Mutual funds and annuities are the most common investments with back-end loads.
A fee you may be charged when you sell certain types of mutual funds.
A surrender charge. For mutual funds or variable annuities, a sales charge that the share owner or contract owner pays upon withdrawing funds from the arrangement. Also known as contingent deferred sales charge. Contrast with front-end load and no-load fund.
The payment of a surrender or sales charge upon the discontinuance of annuities or life insurance or sale of securities. (Also known as a contingent deferred sales charge.)
A fee charged by a mutual fund when you sell your shares.
Redemption charge an investor pays when withdrawing money from an investment. Most common in mutual funds and annuities, the back-end load is designed to discourage withdrawals.
A fee to sell shares in a mutual fund. The fee is usually a percentage of the total amount withdrawn and often decreases the longer a shareholder remains in a fund.
this is when the broker earns a commission when the client sells mutual fund shares. The commission is a percentage of the value of the shares sold.
See: Contingent Deferred Sales Charge.
A sales fee charged when you sell or redeem shares of a mutual fund.
Also called a redemption charge, a commission incurred when redeeming shares of a mutual fund.
Charge imposed by a mutual fund whenan investor redeems shares. Redemption fees and contingent deferredsales charges are examples.
A fee charged by mutual funds to investors who sell their shares before owning them for a specified time.
A sales charge levied when mutual fund units are redeemed.
A fee for selling certain mutual funds before the expiry of their redemption schedule. The redemption fee rate declines anually to nil after a period of years.
A fee charged by managed investments to investors who sell their units before owning them for a specified time.
A fee assessed when certain mutual fund shares are sold. Also called a redemption fee or a contingent deferred sales charge (CDSC). Some funds gradually phase out back-end loads over several years, so that if a shareholder stays invested in the fund long enough, they pay a reduced fee or none at all.
See "Surrender Charge". Beneficiary: The person or persons named by the owner to receive the death benefit in an annuity or other life insurance product.
A back-end load is a sales charge or fee charged when funds are withdrawn from an investment, particularly mutual funds and annuities. In many cases, the fee is reduced over the years of investment, or holding period, and eventually is reduced to zero.
Some mutual funds impose a load, or sales charge, when you sell shares in the fund. That's called a back-end load, or a contingent deferred sales load. Typically, the charge, which is a percentage of the value of the assets you have in the fund, applies only during the first few years you own your shares. In most cases, too, the percentage you pay declines each year during that period and then is dropped. Shares in back-end load funds are sometimes described as Class B shares to distinguish them from front-end load funds, which are known as Class A shares, and level-load funds, called Class C shares.
deferred compensation deferred payment annuity