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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Deferred Sales Charge  

Definition 1.

A fee charged when you sell mutual fund shares, instead of when you buy them. Also known as a back-end load, these deferred charges typically go down each year you hold the fund, until eventually they reach zero. Deferred sales charges give investors an incentive to buy and hold, as well as a way to avoid some sales charges, but note that 12b-1 fees (if any) and management expenses would continue to be levied.
 
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