Redemption FeeMutual Funds
A redemption fee is similar to a very temporary high end load. A redemption fee will reduce your withdrawal amount if you sell the fund’s shares within extremely short time frames. If you sell out quickly, these fees are applied in addition to any back-end load and commissions you may face. You should always check in advance to see if redemption fees will be applied on sale, how long they last, and the amount they reduce withdrawals.
The redemption fee exists to compensate other investors that suffer losses from rapid trading. This fee prevents additional capital from being withdrawn from the fund, leaving it in securities. Fund Management does not have to drain the redemption pool as heavily with these fees in place. The redemption pool is a collection of liquid cash or cash equivalents initially drained by withdrawals from the fund. By slowing the amount paid out and reducing the drain on redemption pools, funds reduce the likelihood they will have to actually liquidate securities to meet redemptions and withdrawals.
Did we help you? Vote with a Crypto-Donation!
Donate Bitcoin Cash
International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
Investment and Finance, Serviced by Amazon
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.