What is the meaning of Redemption charge?

Redemption charge is the 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.

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APABarry Goldsmith. (2010). redemption charge. Retrieved September 22, 2026, from http://smartdefine.org/redemption_charge/definitions/1161973
ChicagoBarry Goldsmith. 2010. "redemption charge" http://smartdefine.org/redemption_charge/definitions/1161973 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, redemption charge, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/redemption_charge/definitions/1161973>.
MLABarry Goldsmith. "redemption charge" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/redemption_charge/definitions/1161973>