Investors pay a contingent deferred sales fee every time they purchase shares in a mutual fund.

Question

Quizplus · Accepted Answer

Investors do not pay a contingent deferred sales fee every time they purchase shares in a mutual fund. A contingent deferred sales fee, also known as a back-end load or exit fee, is a fee charged when an investor sells their shares within a certain timeframe, usually within a few years of purchase. Some mutual funds do charge this fee, but it is not incurred at the time of purchase.

Investors Pay a Contingent Deferred Sales Fee Every Time They