Multiple choice

CDSC is a kind of

  1. entry load

  2. entry load, which varies with holding period of an investor

  3. exit load, which varies with the holding period of an investor

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CDSC (Contingent Deferred Sales Charge) is an exit load that decreases as the holding period increases, incentivizing long-term investments. Entry loads are charged at purchase, not at redemption.

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