Mutual Fund Redemption Charges | Charge

Mutual Fund Redemption Charges

Mutual Fund Redemption Charges

The commission charged by a mutual fund for redeeming shares. For example, a 2% redemption charge on the sale of shares valued at $1000 will result in payment of $980 (or 98% of the value) to the investor. This charge may decrease or be eliminated as shares are held for longer time periods. Also called a back-end load.

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