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.