What is the meaning of Redemption fee?

Some open-end mutual funds impose a' Redemption fee' when you sell shares in the fund, often during a specific (and sometimes brief) period of time after you purchase those shares. The fee is usually a percentage of the value of the shares you sell, but it may also be a flat fee, or fixed amount. The purpose of the fee is to prevent large-scale withdrawals from the fund in response to changes in the financial markets, which might require the fund manager to sell holdings at a loss in order to meet the fund's obligation to buy back your shares.