Some back-end load funds impose a full commission, if the shares are redeemed within a designated time, such as one year. The commission decreases the longer the investor holds the shares.
BACK-END LOAD FUND - A mutual fund that charges investors a fee to sell (redeem) shares, often ranging ...
BACK-END QUALIFICATION - When qualifying a prospective buyer for financing, the ratio of the borrower's...
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.
Balance of trade ...
Some back-end load funds impose a full if the are redeemed within a designated time, such as one year. The commission decreases the longer the holds the shares. The formal name for the back-end load is the contingent deferred sales charge, or CDSC.
However, the annual asset-based management fee is higher on back-end load funds, also known as Class B shares, than on front-end load funds, where you pay the sales charge at the time you purchase.
Many back-end load funds will allow a portion of the investment to be redeemed each year without charge. Also, as with all mutual funds, trailer fees are paid annually by the fund to the advisor, broker or dealer where you hold your funds.
The percentage typically declines each year the charge applies and then is dropped.
However, the annual asset-based management fee is higher on back-end load funds, also known as Class B shares, than on front-end load funds, ...
Contingent deferred sales charge (CDSC) The formal name for the load of a back-end load fund.
 See also: Back-end load, Load fund, Contingent deferred sales charge, Banks, Expense
  
|
RSS
