contingent deferred sales charge investment & finance definition
A fee that is imposed if mutual fund
shares are sold back to the fund within a certain time frame during the initial
years of ownership. Typically, the sales charge decreases over time and is
eliminated after a certain period, such as four years.
See contingent deferred sales charge in Wall Street Words
A mutual fund redemption fee that is reduced or eliminated for specified holding periods. For example, a fund might charge a 6% redemption fee for a holding period of less than one year, a 5% fee for a holding period of one to two years, and so forth. Mutual funds with a contingent deferred sales charge also generally levy an annual 12b-1 fee.
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