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 ?
The rain bring back loads of good memories of my childhood.
Delivery of a single waste truck with back loads for use in the collection of household waste, plastic and paper in the municipality of Sunndal.
Henderson, star of Aidy Boothroyd's promotionwinning team in 2006, said: "I've been back loads of times since, but I never seem to have much luck.
The rain brought back loads of good memories of the childhood," said Ayesha, a young girl.
The setting made the day extra special because it brought back loads of old memories.
I can look at photos and straight away they'll bring back loads of memories.
For one thing, they are unable to ensure you back loads of winners and make your way back from the racecourse with pockets bulging.
I will be back loads - probably every weekend because I will be missing the UK.
They brought us back loads of presents and took us to Pets At Home for another shopping spree - we got so many treats we will be munching for months.
It brings back loads of memories whenever I hear the record, and I still get ribbed about it
EARDLEY International operates their fleet of attic reefers throughout Europe, exporting meat products from the UK to the continent and returning with back loads of fruit, vegetables or frozen goods, as the season dictates.
During the Second World War, the removal vans would bring back loads of sand after deliveries to the coast.