Other Mutual Fund Fees

Mutual fund companies may assess other fees to encourage long-term investing and to keep as much money in the fund as possible. Other motivations include limiting transaction costs and the possibility of having to sell underlying investments at a loss if many investors want to redeem their shares at the same time.

Some mutual fund companies charge early redemption, or exit, fees if you sell your shares within a certain timeframe. The period can last anywhere from five days to more than one year, and the amount of the charge is subtracted from the proceeds of your sale.

Mutual fund companies may also charge an exchange fee for moving your money between funds within their family of funds.

Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. A prospectus contains this and other information. A mutual fund prospectus is available through