Redemption fee (back-end load)

Deduction charged by the management of some funds when an investor returns his or her shares to the fund company (a sales commission charged to investors for the sale of shares in a mutual fund). Often, this fee decreases as the length of the investment increases. The intention here is to reinforce the long-term nature of such investments – and especially in the case of a hedge fund – and to discourage investors from switching frequently from fund to fund. – See all-in fee, mutual fund, no-load fund.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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