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 ?
today announced that it has entered into an agreement with The Co-operators Group Limited to acquire 100 percent of CDSL Holdings Limited ("CDSL") effective April 1, subject to usual regulatory approvals.
But Paul Gourlay of CDSL Ltd set up another name, Barbella Ltd, and a licence application has now been submitted by that company to assume the responsibility of the premises licence.
Paget continued: "Allen was registered as a referee in September 1960 and a year later several teams in Coventry started playing Sunday football and he was appointed secretary of Webster and Bennetts FC, who joined the CDSL in 1962 and he became the league's first secretary.
Sharekhan is also registered as a Depository Participant with NSDL and CDSL.
CDSL, the official supporters' club of Cardiff Devils, have announced travel plans for the coming season.
they can end in optical cables for an individual home or a company, but are completed by a final Ethernet or CDSL network in the case of an apartment block.
For example, instead of charging a 6 percent front-end load, a mutual fund could recoup the same amount through a combination of an annual 1 percent 12b-1 fee and a CDSL of 6 percent that declines 1 percentage point per year until reaching zero after the sixth year.