Exit Fee


DEFINITION of 'Exit Fee'

A fee or charge assessed to an investor for withdrawing money prior to a previously stipulated date. This is almost always expressed and charged as a percentage of assets rather than a flat fee.

May also be known as a "redemption fee", "back-end load" or "contingent deferred sales charge".


Exit Fees may be found not only on mutual funds as back-end loads, but also on hedge funds, annuities and limited partnership units. Often the managers of these funds employ investing strategies that keep daily liquidity to a minimum, and the exit fees act as a deterrent to early withdrawals.

  1. Hedge Fund

    An aggressively managed portfolio of investments that uses leveraged, ...
  2. Back-End Load

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  3. Class B Shares

    A classification of common stock that may be accompanied by more ...
  4. Contingent Deferred Sales Charge ...

    A fee (sales charge or load) that mutual fund investors pay when ...
  5. Redemption Fee

    A fee collected by an investment company from traders practicing ...
  6. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
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