Another name for a mutual fund that charges a contingent deferred sales load is a(n) ____________ fund.

Question

Quizplus · Accepted Answer

The correct term for a mutual fund that charges a contingent deferred sales load is a back-end fund. The load, also known as a CDSC (Contingent Deferred Sales Charge), is typically a percentage of the investor's redemption or sale proceeds and is only charged if the investor decides to sell or redeem their shares within a certain time frame, often between 1 and 6 years after purchasing the fund. The CDSC gradually decreases over time, and after the specified period, it usually disappears entirely.

Another Name for a Mutual Fund That Charges a Contingent