Contingent Deferred Sales Charge

Contingent Deferred Sales Charge - The contingent deferred sales charge is an initial sales fee on mutual fund shareholders pay upon sale of Class-B mutual fund shares. This is for mutual funds with share classes decided when shareholders pay the fund's load or sales charge, Class-B shares carry a deferred sales charge during a five- to 10-year holding period intended from the time of the initial investment. The charge is equal to a percentage of the value of the shares sold. It is supreme in the first year of the period and diminishes yearly until the period ends, at which time it drops to zero.