Deferred Load

A sales charge or fee that is assessed when an investor sells certain classes of fund shares before a specified date. Deferred loads usually run on a flat or sliding scale for one and seven years after purchase, with the load/fee eventually dropping off to zero. Deferred loads are most often assessed as a percentage of assets.


Deferred loads are becoming a much less-used feature of investment companies, thanks to the exploding popularity of exchange-traded funds (ETFs) and no-load mutual funds. Investors now have thousands of choices in the no-load arena, although deferred loads are still found in many types of insurance products, such as annuities and even in many hedge funds. These types of charges are typically put in place to discourage against short-term investment in favor of a buy-and-hold strategy amongst its investors.



Investment dictionary. . 2012.

Look at other dictionaries:

  • deferred load — See back end load …   Financial and business terms

  • deferred sales charge — See back end load …   Financial and business terms

  • 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

  • no-load — An expression used to describe a mutual fund that does not impose any sales charges on investors. The term no load fund is sometimes used to describe a fund without either a front end charge or a deferred sales charge but which may nevertheless… …   Financial and business terms

  • Contingent Deferred Sales Charge (CDSC) — A fee (sales charge or load) that mutual fund investors pay when selling Class B fund shares within a specified number of years of the date on which they were originally purchased. Also known as a back end load or sales charge . For mutual funds… …   Investment dictionary

  • 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

  • Back-End Load — A fee (sales charge or load) that investors pay when selling mutual fund shares within a specified number of years, usually five to 10 years. The fee amounts to a percentage of the value of the share being sold. The fee percentage is highest in… …   Investment dictionary

  • back-end load fund — A mutual fund that charges investors a fee to sell ( redeem ( redemption)) shares, often ranging from 4% to 6%. Some back end load funds impose a full commission if the shares are redeemed within a designated length of time, such as one year. The …   Financial and business terms

  • 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

  • отсроченная нагрузка — — [А.С.Гольдберг. Англо русский энергетический словарь. 2006 г.] Тематики энергетика в целом EN deferred load …   Справочник технического переводчика

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