Description: At one time, mutual fund companies dominated the retail sales market for mutual funds. And part of those days were big deferred sales charges (DSC) levied when retail investors wanted to cash in their holdings. But many players in the industry have moved away from deferred charges, to the point where Globe and Mail financial writer Rob Carrick says that “a reasonable goal for 2016 is that no investor buys a DSC.”
Date: January 8, 2016
1) Do you agree with Rob Carrick’s statement? Why or why not?
2) If you were a senior accounting officer in a firm with a DSC strategy, what would you advise?
3) How would a mutual fund company recognize the revenue from a DSC?