Personal Investments • Fidelity mutual fund FSKAX “short-term trading or redemption fee”

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I found this and it looks like there is a fee called “ short-term trading or redemption fee”. See below:

Footnote 1. No Transaction Fee Fidelity funds are available without paying a trading fee to Fidelity or a sales load to the fund. However, the fund may charge a short-term trading or redemption fee to protect the interests of long-term shareholders of the fund. Shares are subject to the fund's management and operating expenses. See Expenses & Fees for more information.

Any idea what this is or how much it might be? For example if im holding $100,000 of FSKAX, how much or what % can i expect to pay for the “short-term trading or redemption fee”?

Welcome to Bogleheads!

First, are you planning to buy and then sell mutual funds within 30 or 60 days or such?
(Most here on BH would recommend not doing that, for a variety of reasons.)
If not, then this fee is irrelevant in your case.

Here is a link about some fees at Fidelity:
https://www.fidelity.com/learning-cente ... tocks-etfs

At Fidelity, at least for some Fidelity funds, the fee seems to be assessed if a "purchase-then-sale" is made within 60 days. This is to offset [approximate] actual costs of trading, which affect all of the owners of any fund.

You'll find that Google can be your friend, even for what you might think are technical or propietary information sometimes.
Here is the search phrase I used:
https://www.google.com/search?client=sa ... 8&oe=UTF-8

Unfortunately, neither of these seem to have the exact cost that would be assesed.
It might not be wasily found if there are different fees for different categories of funds, so there wouldn't be any single fee to provide.

Here is more information from Fidelity about such fees:
https://www.fidelity.com/mutual-funds/a ... funds/fees
See the chart a few inches from the start of that article.
Note that this fee can vary depending upon what type of fund it is AND any short-term trading fee that Fidelity charges may be different from any such fee that is assessed by the other fund family for non-Fidelity funds (and these can have time intervals that are different from Fidelity's 60-day choice.
Note: At least in the past (not very recently, and this may have changed), such short-term trading fees could be a small flat rate for "the purchase as a whole" or could be a percentage of the amount being sold short-term, e.g., for non-Fidelity funds. You would probably need to find that information from the *other* fund family.

However, regardless of the above, if you are not buying and then selling relatively quickly (that is, you are a "buy and hold" investor), no "short-term trading fee" would apply.

And please try to familiarize yourself with some general fee categories, as the "expense ratio" is not the only fee that might be charged (see chart, which applies to "FundNetwork Funds" at Fidelity; there can be other fees for other types of funds, perhaps assessed by entities other than Fidelity).

RM

Statistics: Posted by eon123 — Wed May 01, 2024 6:37 am — Replies 8 — Views 410