A contingent deferred sales load (CDSL), or back-end load, is a sales commission paid at the redemption of mutual fund shares. The load rate (a percentage of the value of redeemed shares) will typically decrease the longer that mutual fund shares are held and will disappear after a specified period of time. A CDSL may be attached to either class B or C shares of mutual funds. Class A shares have an up-front fee (front-end load). The extent to which a CDSL is of concern depends on the investment time horizon for the mutual fund. If you don’t expect to hold fund shares for a least five or six years (the typical time frame where a CDSL phases out), then you should avoid mutual funds with this feature. We would like your feedback on this Personal Finance Frequently Asked Question.

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