What is CDSC?
Contingent Deferred Sales Charge (CDSC) is a charge imposed on unit holders exiting from the scheme within 4 years of entry. It is intended to enable the AMC to recover expenses incurred for promotion or propagation of the scheme. Or Sometimes the selling expenses of the fund are not charged to the fund directly but are recovered from the unit holders whenever they redeem their units. This load is called a CDSC and is inversely proportional to the period of unit holding.
