Contingent Deferred Sales Charge (CDSC)
Also known as a "back-end load" or "sales charge".
For mutual funds with share classes that determine when investors pay the fund's load or sales charge, Class-B shares carry a contingent deferred sales charge during a five- to 10-year holding period calculated from the time of the initial investment.
The fee amounts to a percentage of the value of the shares being sold. It is highest in the first year of the specified period and decreases annually until the period ends, at which time it drops to zero. As a mutual fund investor, if you were to buy and hold Class-B fund shares until the end of the specified period, you could avoid paying this type of fund's sales charge, thereby enhancing your investment return. Unfortunately, fund research indicates that mutual fund investors are holding their funds, on average, for less than five years, which often triggers the application of a back-end sales charge in a Class-B share fund investment.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Contingent deferred sales charge (CDSC) — The formal name for the load of a back end load fund. The New York Times Financial Glossary … Financial and business terms
contingent deferred sales charge — ( CDSC) See back end load. American Banker Glossary ( CDSC) The formal name for the load of a back end load fund. Bloomberg Financial Dictionary … Financial and business terms
CDSC — contingent deferred sales charge (CDSC) See back end load. American Banker Glossary ( contingent deferred sales charge ) The formal name for the load of a back end load fund. Bloomberg Financial Dictionary … Financial and business terms
CDSC — Contingent Deferred Sales Charge (Business » Accounting) * Communicable Disease Surveillance Centre (Medical » Veterinary) * Cumetrix Data Systems Corporation (Business » NASDAQ Symbols) … Abbreviations dictionary
CDSC — abbr. Contingent Deferred Sales Charge … Dictionary of abbreviations
back-end load — A form of sales charge imposed on investors by some mutual funds. These charges may be called back end loads, deferred loads, deferred sales charges, contingent deferred sales charge ( CDSC), or redemption fees. Regardless of the name, funds with … Financial and business terms
Mutual fund — This article is about mutual funds in the United States. For other forms of mutual investment, see Collective investment scheme. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors… … Wikipedia
B share — (ANZ) Fin a share in a mutual fund that has no front end sales charge but carries a redemption fee, or back end load, payable only if the share is redeemed. This load, called a CDSC, or contingent deferred sales charge, declines every year until… … The ultimate business dictionary
Условная плата за будущие расходы — надбавка к рыночной стоимости ценной бумаги, взимаемая фондом взаимных инвестиций. По английски: Contingent deferred sales charge Синонимы английские: CDSC См. также: Ставки сборов взаимных фондов Финансовый словарь Финам … Финансовый словарь
Back-end loan fund — A mutual fund that charges investors a fee to sell ( redeem) shares, often ranging from 4% to 6%. Some back end load funds impose a full commission if the shares are redeemed within a designated time, such as one year. The commission decreases… … Financial and business terms