Exact(50)
No-load funds that charge redemption fees on short-term trades are far preferable.
For one thing, redemption fees will work only if they are universally applied and enforced.
The redemption fees and trading restrictions have been imposed to accomplish through microeconomics what could not be achieved through logic.
Indeed, many of the fund companies sucked into the current scandal had redemption fees to discourage short-term trading.
Banks have also ratcheted up the use of blackout periods, redemption fees and other restrictions that frustrated customers whose loyalty they wanted.
The study took into account redemption fees and front-end loads, or sales charges, as well as the penalties that fund companies sometimes assess for short-term trades.
Similar(7)
If we find another lender who will offer us more we face a big redemption fee.
It has no front-end or deferred load but has a 2percentt redemption fee.
We put a 2percentt redemption fee on our taxable funds some years ago.
However, there is a hefty early redemption fee of up to 7% of the outstanding balance.
He says that people who try to repay their mortgage early have to pay a redemption fee.
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