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Financial encyclopediaReviewed 2026-10-23

Redemption Fee

A shareholder fee that some mutual funds charge when investors redeem mutual fund shares (that is, sell shares back to the fund). A redemption fee, which is paid to the fund, is not the same as and may be in addition to a back-end sales load, which is typically used to compensate a broker.

Sources and references ↗
PROFILE / FACT FILE

Concept at a glance

Term
Redemption Fee [1]
Subject area
Investor.gov glossary [1]
Jurisdiction / scope
US regulatory and investor-education context [1]
Primary reference
SEC · Investor.gov [1]

Definition and explanation

A shareholder fee that some mutual funds charge when investors redeem mutual fund shares (that is, sell shares back to the fund). A redemption fee, which is paid to the fund, is not the same as and may be in addition to a back-end sales load, which is typically used to compensate a broker. [1]

Source-supported connections

Redemption Fee → Mentioned in the official explanation → Back-end Sales Load [1]
Redemption Fee → Mentioned in the official explanation → Broker [1]
Redemption Fee → Mentioned in the official explanation → Mutual Funds [1]

Frequently asked questions

What does Redemption Fee mean in the cited reference?

A shareholder fee that some mutual funds charge when investors redeem mutual fund shares (that is, sell shares back to the fund). A redemption fee, which is paid to the fund, is not the same as and may be in addition to a back-end sales load, which is typically used to compensate a broker. [1]

RELATION MAP

Redemption Fee connection map

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Redemption Fee

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Links retain their source-specific meaning. Award-time affiliations and links to related reading are not claims about current appointments or economic causation.

Sources and review dates

  1. US SEC · Investor.gov — Redemption Fee ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.

Content preparation: source-based compilation with AI assistance. See methods and attribution. Named sources identify the underlying records; no individual expert review is claimed.