Back End Loan Fund Law and Legal Definition
Back End Loan Fund is a mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designated time period after purchase, such as one year. It reduces the commission if the investor holds the shares longer. The formal name for the back-end load is the contingent deferred sales charge, or CDSC.