Cryptocurrency Q&A
What is the CDSC fee for American funds?
What is the CDSC fee for American funds?
EnchantedDreams
Fri Sep 06 2024
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7 answers
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I'm curious to know, could you please clarify what the CDSC fee stands for when it comes to American funds? And specifically, what is the typical range of this fee that investors can expect to encounter? I understand that it's an important factor to consider when making investment decisions, so I'm eager to get a better grasp of it. Thank you in advance for your insights.
7 answers
KimonoGlitter
Sun Sep 08 2024
Contingent deferred sales charge, abbreviated as CDSC, is a fee levied on the sale of shares within a predefined time frame. This fee, also known as a back-end load, serves as a penalty for early redemption of investments.
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HanbokGlamourQueenEleganceBloom
Sun Sep 08 2024
The purpose of CDSC is to encourage investors to maintain their investments for a longer duration, aligning with the long-term investment strategy of many mutual funds and other investment products.
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Andrea
Sun Sep 08 2024
For American Funds Class C and 529-C shares, the CDSC is set at 1% of the amount withdrawn. This fee is designed to discourage investors from making premature withdrawals within the first year of their investment.
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Elena
Sun Sep 08 2024
The CDSC is not a one-time fee but is assessed on each withdrawal made within the specified period. Therefore, it is important for investors to carefully consider their investment horizon before investing in products with CDSC.
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JejuSunshineSoulMateWarmth
Sat Sep 07 2024
The 1% CDSC on American Funds Class C and 529-C shares is a standard fee across the industry, and it is essential for investors to understand its implications before making any investment decisions.
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