Friday, December 24, 2010

Contingent Deferred Sales Load

A Contingent Deferred Sales Load is a sales load that applies to withdrawals made within a certain time frame. As with most fees the nature and quantum of the fees charged by each particular fund and fund family varies - so it pays to find out all the fees. Some funds may charge as much as a 6% penalty if you withdraw in the first year, and 5% in the second year, and so-on. Thus this kind of holding-time dependent fee is something to avoid if you think you will need to access the funds before the time period is up.

Synonyms: Holding period dependent fee, Contingent fee, Exit fee, Withdrawal fee, Early Withdrawal fee
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