# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Maximum Sales Fees

Initial Sales Fee (Front-end Load)

The initial sales charge or front-end load is a deduction made from each investment in the fund. The amount is generally based on the amount of the investment. Larger investments, both initial and cumulative, generally receive percentage discounts based on the dollar value invested. A typical front-end load might be a 4% charge for purchases less than $50,000, but might decrease as the amount of the investment increases.

Deferred Sales Fee (Back-end Load)

Also called a contingent deferred sales charge or back-end load, a deferred load is an alternative to the traditional front-end sales charge as it is only deducted at the time of sale of fund shares. The deferred load structure commonly decreases to zero over a period of time. A typical deferred load's structure might have a 5% charge if shares are redeemed within the first year of ownership, and decline by a percentage point each year thereafter. These loads are normally applied to the lesser of original share price or current market value. It is important to note that although the deferred load declines each year, accumulated annual distribution and services charges (the total 12b-1 fee) can sometimes offset this decline.

Redemption Fee

The redemption fee is an amount charged when money is withdrawn from the fund. This fee does not go back into the pockets of the fund company, but rather into the fund itself and does not represent a net cost to shareholders.

Also, unlike contingent deferred sales charges, redemption fees typically operate only in short, specific time clauses, commonly 30, 180, or 365 days. However, some redemption fees exist for up to five years. Charges are not imposed after the stated time has passed. These fees are typically imposed to discourage market timers, whose quick movements into and out of funds can be disruptive. The charge is normally imposed on the ending share value, appreciated or depreciated from the original value.


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