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 ?
It has a holding period of 30 days and has a redemption fee of one percent of the redemption amount.
If the remainder of the debt is refinanced RBS has agreed to waive 25% of its redemption fee, while Citizens has agreed to waive its entire redemption fee and discount the amount due to it by 5%.
00% redemption fee on shares held less than 60 days.
Its research has revealed that the average mortgage redemption fee is now pounds 187, significantly higher than the pounds 35 "real" cost to lenders.
If residents default on their property taxes, a $15 redemption fee will be assessed and the taxes will be subject to additional penalties of 1.
In addition, the SEC has proposed a rule, Mandatory Redemption Fees for Redeemable Fund Securities, requiring, with certain exceptions, that funds require all shareholders to hold fund shares for five days or pay a 2% redemption fee.
They often charge a redemption fee to investors who withdraw funds before a specified period (e.
A redemption fee of pounds 1,224 was charged, plus a deeds handing fee of pounds 213.
There are no compulsory insurances, but there is a three per cent redemption fee if the deal is scrapped in the first five years.
00 percent redemption fee on shares held for less than 90 days.
At that time, a $15 redemption fee will be assessed and the taxes will be subject to additional penalties of 1.
In addition to a low rate, we don't charge members a valuation or redemption fee.