A back-end load is a mutual fund fee assessed upon redemption.
Funds with back-end loads are sometimes called "B" shares. These funds impose a contingent deferred sales charge, or CDSC, which is paid at the time of redemption. This fee is generally much higher than a front-end load.
The good news is that it declines incrementally to zero over time and usually disappears in five to eight years.
These funds charge 12b-1 fees, which are typically higher than for front-end-load funds. These funds may also convert "B" shares into "A" shares after the load period has expired.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Retirement Planning: 2 Big 401(k) Mistakes That Cost You Thousands
- Why Ellie Mae Inc. Shares Could Pop 25%
- MannKind Stock: Afrezza Approved at Last, But Will Sales Disappoint?
- Is VMware Catching Up in End-User Computing?
- Apple, Inc. Quietly Declares Search War on Google
- Better Buy: UnitedHealth Group Inc. Vs. Humana