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Redemption and Sales Charges

Fund redemption charge terms for exit loads, redemption fees, sales charges, and withdrawal costs.

Redemption and Sales Charges terms explain the explicit and embedded costs investors may pay through fund expense ratios, management fees, sales loads, redemption fees, and share classes.

Use this branch when costs or share-class design can change net return, distribution economics, adviser compensation, or the suitability of a fund wrapper.

Key Terms in This Branch

TermUse it for
Exit LoadA fund cost, compensation, share-class, or distribution term that affects investor net return.
Redemption FeeA fund cost, compensation, share-class, or distribution term that affects investor net return.
Sales ChargeA fund cost, compensation, share-class, or distribution term that affects investor net return.

What to Check

Check the prospectus or offering document, expense ratio, fee waiver, sales charge, redemption fee, 12b-1 or distribution fee, adviser compensation, and share-class eligibility.

Common Mistakes

  • Comparing gross performance without subtracting all relevant fund costs.
  • Ignoring share-class eligibility and distribution compensation.
  • Treating fee waivers as permanent without checking the document.
  • Overlooking redemption fees, sales loads, and tax drag.

This page is educational and does not recommend a specific fund, security, tax treatment, or account choice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Exit Load

An exit load is a fee charged when an investor redeems fund shares within a specified holding period or under stated terms.

Redemption Fee

A redemption fee is charged when investors sell fund shares, often to discourage short-term trading or protect remaining shareholders.

Sales Charge

A sales charge is a fee paid to buy, sell, or distribute investment products such as mutual funds or annuities.

Revised on Sunday, June 21, 2026