A deferred load is a fee charged when shares in a mutual fund are redeemed.

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A deferred load, also known as a back-end load or redemption fee, is a fee charged when shares in a mutual fund are redeemed. It is usually a percentage of the amount being redeemed and is designed to encourage long-term investment in the fund. Some mutual funds may have a declining scale of deferred loads, where the percentage decreases as the holding period gets longer.

A Deferred Load Is a Fee Charged When Shares in a Mutual