Redemption fee

(redirected from Early Redemption Fee)

Redemption fee

A fee some mutual funds charge when an investor sells shares within a specified short period of time.

Redemption Fee

A fee that some mutual funds assess when a shareholder redeems shares from the fund during a certain, usually brief period of time after purchase. It may be a flat fee or a percentage of the value of the shares redeemed. Mutual funds charge redemption fees to discourage new investors from withdrawing from the mutual fund if the fund's net asset value drops unexpectedly.

Redemption fee.

Some open-end mutual funds impose a redemption fee when you sell shares in the fund, often during a specific, and sometimes brief, period of time after you purchase those shares.

The fee is usually a percentage of the value of the shares you sell, but it may also be a flat fee, or fixed amount.

The purpose of the fee is to prevent large-scale withdrawals from the fund in response to changes in the financial markets, which might require the fund manager to sell holdings at a loss in order to meet the fund's obligation to buy back your shares.

References in periodicals archive ?
The better the initial terms, the more likely your lender is to make you pay an early redemption fee if you pay all or part of your mortgage off early.
All purchases and transfers into the program must be held at least six months to avoid an early redemption fee.
The mortgage also comes with no tied-in products, such as buildings and contents' insurance, or early redemption fee.
These charges are principally related to the early redemption fee and unamortized discount on mandatorily redeemable preferred shares.
The full amount of the Notes will be redeemed in cash, including an early redemption fee of approximately $20.
19% fixed rate mortgage with no early redemption fee enables borrowers to move their loan at any time without penalty.
Provider Contact Number Variable Rate Max LTV Cashback Incentives Fees payable Early redemption fee
Beginning today, Schwab clients can buy and sell nineteen PowerShares ETFs, with $0 online trade commissions and no early redemption fees or hidden costs.
The loan is exempt from credit handling fees and early redemption fees.
Following a Central Bank regulation issued early this year, most banks have imposed uniform early redemption fees on personal loans and car loans.
In addition, another lender is currently writing to mortgage clients offering to waive early redemption fees in an effort to get them to remortgage elsewhere

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