which would require mutual funds to keep significant levels ofliquidcash on hand. Many consider the CDSC to be a payment for the broker's expertise in choosing a mutual fund that fits an investor's goals. On prospectuses, mutual funds must disclose CDSC and other fees, so that investors may...
How you pay these fees (which are called "loads") depends on the type of mutual fund you have. A-shares have a front-end load, meaning you pay your fees (around 8%) to the selling broker when you buy—it's very thoughtfully added to the price right then. B-shares are marketed ...
The formal name for theloadin aback-end load fund. A CDSC is thefeepaidwhen ashareholdersellssharesin a mutual fund within a certain number of years. That is, when aninvestorinitially buys asharein a back-end load fund, he/she agrees to pay a third party, usually a financial institution...