Initial Sales Charge, or
ISC, is a type of
commission charged on
mutual fund purchases. When you buy an ISC fund, you are charged a flat percentage of your purchase amount as commission. After this, however, there is no fee to redeem your holdings in the fund or to switch to other ISC funds in the same fund family. This is in contrast with
Deferred Sales Charge, where you don't pay anything upfront, but you are charged to redeem your funds. ISC is also known as
Front-End Load (
FE).
Other types of mutual fund commission include: Deferred Sales Charge (DSC), which is also called Back-End Load; and No Load (NL).
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