contingent deferred sales charge

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Contingent deferred sales charge (CDSC)

The formal name for the load of a back-end load fund.

Contingent 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, a certain percentage of the share's value if he/she decides to sell it within five to 10 years, depending on the specific nature of the agreement. The CDSC usually declines by the year until the maximum number of years is reached. See also: B-share.

contingent 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% redemption fee for a holding period of less than one year, a 5% fee for a holding period of one to two years, and so forth. Mutual funds with a contingent deferred sales charge also generally levy an annual 12b-1 fee.
References in periodicals archive ?
They had been found guilty of forging and altering documents using the Dubai Naturalisation and Residency Department system, paying off exit fees for more than 1,000 people who had overstayed their visas.
Just this year, CUB successfully pushed for a new law that caps electric exit fees at $50 for offers going forward.
Others are being forced to pay for advice - even when they have small amounts of just a few thousand pounds, or they are being charged exit fees.
The action plan follows an announcement by Mr Osborne this week that a Treasury consultation will be launched next month, to make sure that people are not charged excessive early exit fees and are treated fairly when moving their pension to a company that offers them flexible options to access their savings.
Chancellor George Osborne has said that a Treasury consultation will be launched next month, to make sure that people are not charged excessive early exit fees and are treated fairly when moving their pension to a company that offers them flexible options to access their savings.
ON incorrectly charged exit fees and/or overcharged customers after it introduced price rises in January 2013 and January last year.
Companies are not supposed to apply exit fees if a customer signals their intention to move supplier within the standard 30-day notice period of a price rise.
Already available on iPhones, it also warns of any early exit fees and sends out an alert when the deal is about to expire so users can switch again.
The report said the FCA was planning to review 30 million policies that were decades old and that it was considering scrapping policy exit fees.
No more exit fees for households: Earlier this year, Origin became the first major energy retailer to abolish exit fees from all of its home energy plans - something that ninety-three per cent of ACT survey respondents said was important to them.
These temporary permits are possessed by those living in Oman working in Al Ain and the exit fees are not new
Fatcat energy firms have left hundreds of thousands of families unable to avoid massive price hikes because of hidden exit fees in their contracts.