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 minimum investment in the Fund is RO10,000 and there are no entry or exit fees.
The minimum investment in the Fund is OMR 10,000 and there are no entry or exit fees. Abdullah Al Hinai, Chief Wholesale Banking & Strategic Growth Officer, Bank Muscat, said: "The Fund is attracting investors as a result of strong performance, no entry or exit load and daily liquidity.
The transaction resulted in a significant realized gain on Gladstone Capital's equity investment and full repayment at par of the debt investment including all accrued interest and exit fees. Gladstone Capital invested in ADC in October 2013.
Today, 21 August 2019, SSE Energy Services has updated tariffs and removed exit fees for certain products:
"Given the significant increase in exit fees, mortgage buyouts have been limited.
ASIC has amended Class Order 14/1252 to ensure it is consistent with the Treasury Laws Amendment (Protecting Your Super Package) Act 2019 and Regulations (PYSP), which ban exit fees from 1 July 2019.
Exit fees, customer service problems, restrictive contracts and TV packages still drive lots of complaints to Resolver - 13,655 cases last year, up nearly 40%.
The Competition and Markets Authority found damaging practices including year on year stealth price rises and big exit fees.
The embassy issues travel documents for free, pays exit fees, provides airfare assistance and issues endorsements to the immigration office in Putrajaya, he said.
Industry rules allow customers on these tariffs to switch to another firm within 49 days of it coming to an end without being hit with exit fees.
Summary: The DFA shouldered the cost of the exit fees and plane tickets, and also handed out Dh365 financial assistance.