Deferred Sales Charge

A deferred sales charge (load) is a charge you pay when you sell your shares. It is sometimes referred to as the back-end load . The charge may start out at 5% or 6% for the first year, and get smaller each year after that until it reaches zero.

For example: You invest $1,000 in a mutual fund with a 6% back-end load that decreases at a rate of 1% per year until year 7, when it is 0%. Suppose the investment value is $1,100 at the beginning of year 2 . You redeem your shares for $1,100 and pay the $50 back-end load (5% of $1,000). Therefore, you actually receive $1,050.

You can determine the deferred sales charge by looking at the fee and expense table in the prospectus or profile. If the fund has decreasing deferred sales charge over time, then the fund usually will include a table in the prospectus or profile.

http://www.sec.gov/investor/tools/mfcc/back-load-help.htm