Redemption fee

(redirected from Redemption Fees)

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 ?
00 NAVs, and retail investors who want to avoid even the remote chance of redemption fees or gates, "will have no choice but to invest in a government money market fund," ICI states.
3 million in after-tax early debt redemption fees in the fiscal 2015 quarter, adjusted net income climbed 19.
The institutional funds impose redemption fees in certain cases and will need to suspend redemptions-in a restriction called a "redemption gate"-for up to 10 business days if the fund's liquidity falls below certain levels.
said it will eliminate all redemption fees charged to equity fund shares held longer than seven days.
To achieve this, it is offering a opportunity to subscribe to the Fund, with no monthly subscription or redemption fees.
The loan is exempt from credit handling fees and early redemption fees.
The three lenders have agreed to waive redemption fees totalling $151,000 (PS94,000) and to write off 5% of the money due to them.
Delta Air Lines (NYSE:DAL) announced today that it is to eliminate award ticket redemption fees for SkyMiles frequent flyer members, effective immediately.
Check early redemption fees in case you repay ahead of time - they can easily wipe out any savings.
In 2003, none of the main lenders charged more than pounds 200 in standard redemption fees, but more than two-thirds do today.