Jul 24 2010

What is a back-end load mutual fund?

Category: Finance

Answer:

A back-end load or deferred sales charge mutual fund will typically only charge a transaction fee upon completion of the sale of the security. The transaction fee for a back-end load fund will often decrease as the security is held for longer periods and is most often associated with class B mutual fund shares. The transaction fees are set to discourage early sales.


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