A ___________ is a charge applied when mutual fund shares are redeemed.

Question

Quizplus · Accepted Answer

A back-end fee, also known as a redemption fee or exit fee, is typically charged when an investor sells or redeems mutual fund shares. This fee is designed to discourage short-term trading and to help the mutual fund cover the costs associated with selling securities. Management fees are ongoing fees that are charged for managing and operating a mutual fund, while front-end fees and switch fees are charged at the time of purchase or when switching between funds. Special fees are not a commonly used term in the mutual fund industry.

A ___________ Is a Charge Applied When Mutual Fund Shares