The lessening in AUMs was mainly because of redemption in JS value fund and JS growth fund after the elimination of back-end load
following to the conversion of these funds from closed-end to open-end funds in the last year.
Fees that you pay in selling a fund can be called exit fee, redemption fee or back-end load
Enhancement of unit-holders rights in case of any material change impacting funds category and investment objective or other key aspects such as management fee or back-end load
of 5% acts as a disincentive for redemptions.
Also, the fund does not provide instant liquidity like bank accounts because a back-end load
structure is associated with the fund in case the investor decides to withdraw his funds prior to the two-year life of the fund.
A back-end load
might be charged when money is withdrawn from a fund; sometimes the percentage deducted goes down the longer the money is kept in the fund.
They come in two varieties: (1) a front-end load, assessed as a percentage of the contribution, and (2) a back-end load
, commonly referred to as surrender charges, assessed as a percentage of the amount withdrawn.
This may be kept by the distributor (sales branch of the fund group) to recoup the broker's commission when there was no traditional front-load sales charge for back-end load
It is also worth mentioning that the management's decision of not putting a back-end load
was also made in the best interest of the investors.
As part of the merger process, fund managers are required to disclose details of assets and liabilities of fund along with a statement of material facts encompassing investment policy, provisioning policy, any restrictions on unit holders, post merger management fee, applicable front-end and back-end load
and treatment of un-amortized cost.
5% of your invested savings, and perhaps you've even grasped the difference between a front-end and back-end load
down cold (see "Nothing Comes Free," Moneywise, May 1998).
Today, an investor who buys a load fund has to decide among front-end load funds, back-end load
funds, funds with 12b-1 fees, funds with 12b-1 fees and declining redemption fees and so forth.