Unlike a back-end load, which profits the fund company, redemption fees go back into the fund itself and thus do not represent a net cost to shareholders. (MiMi.hu)

In order to process a short-term redemption fee, shares of mutual funds that carry such a fee must be tracked, or aged, beginning at the time of purchase. Then, at the time of sale, shares must be examined to determine if they are subject to a redemption fee. (Variable Annuity Life Insurance Company)

A redemption fee is another type of fee that some funds charge their shareholders when the shareholders redeem their shares. Although a redemption fee is deducted from redemption proceeds just like a deferred sales load, it is not considered to be a sales load. (US Securities and Exchange Commission)