Exit Fee
A fee or charge assessed to an investor for withdrawing money prior to a previously stipulated date. This is almost always expressed (and charged) as a percentage of assets rather than a flat fee.
May also be known as a "redemption fee", "back-end load" or "contingent deferred sales charge". Investopedia Says:
Exit Fees may be found not only on mutual funds (as back-end loads), but also on hedge funds, annuities and limited partnership units, among others. Often the managers of these funds employ investing strategies that keep daily liquidity to a minimum, and the exit fees act as a deterrent to early withdrawals. Related Terms:
Back-End Load
Class B Shares
Contigent Deferred Sales Charge - CDSC
Hedge Fund
Load Fund
Redemption Fee |