alleryStart learning →Unlike a deferred sales load, a redemption fee is paid to whom?
AA stockbroker
BThe fund
CThe exchange
DThe custodian
Answer & Solution
Correct answer: B. The fund
A redemption fee goes to the fund to defray its redemption costs, not to a broker.
Keep practising Mutual Funds
Browse all Mutual Funds questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What risk can arise when an ETF tracks assets using futures and swaps?Replication in an index ETF means doing what?An ETF arbitrage mechanism keeps which two values close?Who creates and redeems ETF shares directly with the issuer in large blocks?How does an ETF share differ from an open-end mutual fund unit?What is mismarking in securities valuation?How often are a fund's investments valued for NAV?How many units does a $50,000 investment buy in a no-load fund at NAV of $25?