You have owned shares in the Scotia Stock Fund for years. Now, you decide to redeem your shares and invest in the Scotia Bond Fund. Usually, the fund sponsor is willing to waive the ___________ fee for this transaction.

Question

Quizplus · Accepted Answer

The term "redeem" indicates that the investor is selling their shares in the Scotia Stock Fund. By purchasing shares in the Scotia Bond Fund with the proceeds, the investor is making a switch between funds. A switch fee is typically charged by mutual fund companies for this type of transaction, but in many cases, the fund sponsor is willing to waive the fee to encourage investors to remain within their family of funds. The other answer choices do not accurately describe the fee that would be relevant in this scenario.

You Have Owned Shares in the Scotia Stock Fund for Years