Which of the following best describes vesting under a deferred sales charge (DSC) plan?

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Multiple Choice

Which of the following best describes vesting under a deferred sales charge (DSC) plan?

Vesting in a deferred sales charge plan means the back-end load you pay when you redeem is tied to how long you’ve held the investment. The charge starts higher and decreases the longer you keep the fund, and once you reach the vesting period, the remaining DSC can be waived entirely. This is why the best description is that the DSC declines over time and may be waived after vesting. It’s a redemption-based (back-end) charge, not something charged at purchase, not a flat fee, and not solely charged only after vesting.

Vesting in a deferred sales charge plan means the back-end load you pay when you redeem is tied to how long you’ve held the investment. The charge starts higher and decreases the longer you keep the fund, and once you reach the vesting period, the remaining DSC can be waived entirely. This is why the best description is that the DSC declines over time and may be waived after vesting. It’s a redemption-based (back-end) charge, not something charged at purchase, not a flat fee, and not solely charged only after vesting.

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