back-end load


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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.

back-end load

Back-end load.

Some mutual funds impose a back-end load, or a contingent deferred sales charge, if you sell shares in the fund during the first six or seven years after you purchase them.

The charge is a percentage of the value of the assets you're selling. The percentage typically declines each year the charge applies and then is dropped.

However, the annual asset-based management fee is higher on back-end load funds, also known as Class B shares, than on front-end load funds, where you pay the sales charge at the time you purchase.

References in periodicals archive ?
(3) Back-End Load. Also referred to as a "contingent deferred sales charge (CDSC)," a "back-end" load is the commission charged for redeeming mutual fund shares.
B shares have back-end loads or contingent deferred sales charges (CDSC).
It is also worth mentioning that the management's decision of not putting a back-end load was also made in the best interest of the investors.
As part of the merger process, fund managers are required to disclose details of assets and liabilities of fund along with a statement of material facts encompassing investment policy, provisioning policy, any restrictions on unit holders, post merger management fee, applicable front-end and back-end load and treatment of un-amortized cost.
Yes, you may have caught on that fund fees now average 1.5% of your invested savings, and perhaps you've even grasped the difference between a front-end and back-end load down cold (see "Nothing Comes Free," Moneywise, May 1998).
Today, an investor who buys a load fund has to decide among front-end load funds, back-end load funds, funds with 12b-1 fees, funds with 12b-1 fees and declining redemption fees and so forth.
Back-end load: The final charges of commission and expenses made by an investment trust or insurance policy when the investor is paid out.
Given the elements listed above, the revenue profile will be back-end loaded. Future revenues will benefit from the entry into service of Eutelsat Quantum, KONNECT and KONNECT VHTS, with an improving trend in the outer years.
With QuickLogic's 2019 revenue now more back-end loaded than previously expected, Desilva sees reduced near-term visibility.
Osha said his numbers show that more Model 3s were registered in April and May than during all of the first quarter, "and it is important to note that Tesla's quarterly vehicle deliveries are typically back-end loaded. Demand for the Model 3 continues to be solid."
Within these fees can be 12b-1 fees--charged annually for a fund’s marketing and distribution costs--plus front- and back-end loads; and
* use of back-end loads (surrender charges) that phase out over time rather than the front-end loads typical of other types of policies;