What are front-end and back-end sales charges?

A sales charge is paid by the investor in return for the sale of a fund; one deducted when you subscribe is a front-end sales charge, and one deducted when you redeem is a back-end sales charge.

It may be charged at different rates depending on the amount invested, the distributor, the investment period and so on. Laws and regulations set separate caps on sales charges and distribution fees (2% for sales charges and 1% for distribution fees, according to the FSS glossary), and the detailed standards may be amended.