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Sales charge |
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Sales chargeA brokerage fee charged to a buyer of shares in a mutual fund. The charge is deducted prior to the balance being invested in the fund.Sales chargeThe fee charged by a mutual fund at purchase of shares, usually payable as a commission to a marketing agent, such as a financial adviser, who is thus compensated for assistance to a purchaser. It represents the difference, if any, between the share purchase price and the share net asset value.Sales charge Similar MatchesContingent deferred sales charge (CDSC)Contingent deferred sales charge (CDSC)The formal name for the load of a back-end load fund. Redemption chargeRedemption chargeThe commission a mutual fund charges an investor who is redeeming shares. For example, a 2% redemption charge (also called a back end load) on the sale of shares valued at $1000 will result in payment of $980 (or 98% of the value) to the investor. This charge may decline or be eliminated as shares are held for longer time periods. Noncash chargeNoncash chargeA cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. Management chargesManagement chargesCharges made by the managers of, for example, a mutual fund or unit trust which cover investment management and administration costs. Charges usually take the form of a percentage fee based on the value of the fund. The charges for unit trusts tend to be higher than for investment trusts (typically 1.5% as against under 1%). Tracker funds, which are passively managed to follow an index, are much cheaper to run, and the costs passed on to investors are correspondingly lower. Exchange-traded funds, a new type of collective fund imported from the USA, also have lower charges than conventional unit trusts. Bankruptcy chargeBankruptcy chargeThis is an investigation carried out by the Land Charges Registry to check if a purchaser is or has ever been bankrupt. Most mortgage lenders will insist on this search being carried out and it usually carries a small charge. Further SuggestionsSurchargeDischarge of lien Carrying charge Finance Charge Late Charge chargeable gain chargeable event certificate Late charge Discharge Import surcharge Unpaid ground rent charge Charge certificate First charge initial charge charge card Deferred charge Finance charge exit charge Late charge chargeable event late charge Discharge fee Service charge Carrying Charges Charge off |
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