Redemption fee

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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.

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References in periodicals archive ?

parent company has no non-affiliate debt, and raised $2,972,705 during the year ended December 31, 2017, under the authority of an 11 USC SS 1145 order and $91,154 from warrant redemption fees at $0.10 per warrant from designees redeeming unexercised warrants that have been called but were not exercised timely.

Mentor Capital, Inc. files its annual 10-K filing

In addition to commission-free trades, the OneSource ETF platform has no enrollment requirements nor early redemption fees, which Schwab says differentiates its platform from other commission-free ETF offerings.

Schwab Adds 12 Commission-Free ETFs to Platform

Andrew Hagger, from Moneycomms.co.uk, said: "Whenever you're comparing mortgages, always ask for the total cost of the loan, including the fee, and make sure you understand what early redemption fees are applicable before you sign on the dotted line."

Property loans to write home about; FINANCE; THE LOWDOWNON BAGGING A MORTGAGE

The collected USD 0.10 redemption fees were paid out electronically through DTCC directly into brokerage accounts for holders of the remaining Series A & C warrants in 2014, will be paid out for the remaining Series B warrants in approximately 45 days, and may be paid out for the still currently active USD 1.60 Series D warrants in approximately nine months.

Mentor Capital recovers USD 15m for shareholders

Institutional investors who prefer money market funds with stable $1 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 stated.

SEC Imposes CySweeping' Liquidity Rules for Mutual Funds, ETFs

Prime money market mutual funds will have to shift to a floating net asset value (NAV), and the funds' boards will have to consider implementing redemption fees or gates if liquidity falls below specific levels.

Money Fund Landscape, with Reforms Imminent

In addition, the new fund may be subject to liquidity gates and/or redemption fees as required by the new money market fund regulations.

BMO Global Asset Management unveils Institutional Prime Money Market Fund

Also, their previously held perception as unimpeachably liquid instruments will end: Under certain conditions, fund boards will have the option to impose redemption fees or even block redemptions in a crisis.

Cash investing in 2016: legislative changes taking effect this year complicate industry

Excluding $4.3 million in after-tax early debt redemption fees in the fiscal 2015 quarter, adjusted net income climbed 19.7% from $116.8 million.

Comps help lift results at Metro

The NAV of these MMFs will not float, but the funds will be required to impose the redemption fees and gates.

Key Changes Ahead

Before committing to a new mortgage provider, it's important to check whether you have any early redemption fees that apply if you change your existing home loan.

Do your homework to reduce stress of move; MONEY, MONEY, MONEY Moving house can be stressful but securing a mortgage on your new property doesn't have to be. Here Principality Building Society's customer director Julie Ann Haines shares her tips for homeowners looking to move

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