Back-end load funds often have a decreasing redemption fee (deferred sales charge) schedule, which reduces the longer the investor holds the fund. The feedback from the document states:
" Fund sponsors use a decreasing redemption fee (deferred sales charges) schedule to recover their costs from investors who opt out of the fund early. In most cases, redemption fees on a back-end load fund decrease the longer the investor holds the fund. "
[Reference: Chapter 16 – Mutual Fund Fees and ServicesLearning Domain: Evaluating and Selecting Mutual Funds, , , , ]
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