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contingent deferred sales charge

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Financial Dictionary

Contingent Deferred Sales Charge - CDSC

In the context of mutual funds, it is a back-end load charged only when a special circumstance occurs.

Investopedia Commentary

A good example of a CDSC is a charge applied when you decide to move your money from one mutual fund into another company's fund. This sales charge is "contingent" because it's only applied when the funds are prematurely moved out of the original mutual fund.

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See also: Back-End Load, Mutual Fund

Also spelled: CDSC

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Financial Dictionary

contingent deferred sales charge

A mutual fund redemption fee that is reduced or eliminated for specified holding periods. For example, a fund might charge a 6% redemption fee for a holding period of less than one year, a 5% fee for a holding period of one to two years, and so forth. Mutual funds with a contingent deferred sales charge also generally levy an annual 12b-1 fee.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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