Contingent deferred sales load definition
WebDefinition: It is the exit fee charged by a no load mutual fund. The CDSC is a reducing charge. It reduces annually and becomes zero upon completion of 4 years form the date … WebKnown as a Contingent Deferred Sales Charge ( CDSC or sometimes Deferred Sales Charge ), this is a fee paid when shares are sold. Also known as a "back-end load", this fee typically goes to the stockbrokers that sell the fund's shares.
Contingent deferred sales load definition
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WebMar 22, 2024 · The contingent deferred sales charge, called a CDSC or a "back-end load", is a fee that is charged by mutual fund companies on … WebContingent Deferred Sales Charge. The formal name for the load in a back-end load fund. A CDSC is the fee paid when a shareholder sells shares in a mutual fund within a certain number of years. That is, when an investor initially buys a share in a back-end load fund, he/she agrees to pay a third party, usually a financial institution or broker ...
WebJan 12, 2001 · A deferred sales charge (load) is a charge you pay when you sell your shares. It is sometimes referred to as the back-end load . The charge may start out at … WebApr 6, 2024 · How Mutual Fund Class B Shares Work . Mutual fund B shares do not require front-end sales charges, but carry a contingent deferred sales charge (CDSC) and …
WebThe RR must explain the contingent deferred sales load to the prospect. The calculation of the contingent deferred sales load upon the redemption of a mutual fund is based on a percentage of either the NAV at the time of purchase or the NAV at the time of redemption, whichever is less, and generally the fee may not exceed 2% WebJun 30, 2024 · Redemption Fee: A redemption fee is a fee charged to an investor when shares are sold from a fund . The fee is charged by the fund company and added back to the fund. A redemption fee may also be ...
WebThis fund doesn't charge a front-end load, but it does charge a contingent deferred sales load of 4 percent for any withdrawals during the first five years. If Mary withdraws $7,500 during the second year, how much is the contingent deferred sales load? 7,500 x 4% = $300 contingent sales load Question 4
WebSep 29, 2024 · What is a Contingent Deferred Sales Charge? Also called a back-end load, a contingent deferred sales charge is a fee paid to sell a specific investment. It is … kingofpaints.comWeb(A) The investment company has a deferred sales charge paid upon redemption that declines over the period of a shareholder's investment ("contingent deferred sales load"), … king of packWebcontingent deferred sales charge. A mutual fund redemption fee that is reduced or eliminated for specified holding periods. For example, a fund might charge a 6% … luxury iphone 6 casesWebUnder the Policy, one could claim or imply that a mutual fund is no-load as long as the fund did not have a: 1. contingent deferred sales load 2. 12b-1 fee in excess of .25% of average net fund assets per year 3. service fee in excess of .25% of average net fund assets per year 4. front-end load in excess of .25% of the purchase price king of paints slate greyWebThis arrangement is often called an “asset-based” or a “fee-based” program. Class F-1, F-2, F-3 and 529-F-1 shares do not have an up-front or a contingent deferred sales charge (CDSC). Class F-2 shares also do not carry a 12b-1 fee but are subject to sub-transfer agency fees. These expenses will vary among the funds. luxury ipsd caseWebWhile this fund doesn't charge a front-end load, it does charge a contingent deferred sales load of 4 percent for any withdrawals in the first five years. If Mary withdraws $6,200 during the second year, how much is the contingent deferred sales load? Contingent Deferred Sales Load: $248. king of pain the policeWebJun 8, 2024 · A Contingent Deferred Sales Charge (CDSC) is a back-end sales charge paid for Class B mutual fund shares within a specified period, and depends on the investor’s holding period. All mutual fund share categories are investments in the same underlying portfolio, and all investors pay a share of the fund’s expenses. luxury iphone x wallet case