Back-end load - Definition

A Mutual Fund that charges investors a fee to redeem shares. Some back-end load funds enforce a full Commission if the shares are redeemed within a chosen length of time. The commission lessens if investors hold the shares for a longer period of time.

The back-end load is a type of sales charge that is used with mutual funds that have share classes, like Class-B shares.

When an investor initially buys A Share in a back-end load fund, he agrees to pay an intermediary, usually a financial institution or Broker, a certain percentage of the share's value if he decides to sell it within 5 to 10 years, depending on the specific nature of the agreement. The commission usually declines by the year until the maximum number of years is reached.

Terms near "Back-end load"

Back-to-back loan
Backdoor listing
Backup withholding
Backward integration
Bad debt
Bad debt reserve
Balance of payments
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