Short-Term Redemption Fees

Short-term trading of mutual funds by investors can adversely impact the funds due to the increased administrative costs of managing the fund's portfolio.

Short-term trading also increases Scottrade's administrative cost associated with providing a no-transaction fee program. Short-term redemption fees are therefore intended to discourage short-term trading in no-load mutual funds.

Scottrade will assess a short-term redemption fee (detailed information on our fees can be found in the Explanation of Fees (PDF)) upon the sale or exchange of a no-load mutual fund held fewer than 90 days, with the exception of the Rydex, Guggenheim, ProFunds and Direxion families of funds, which are intended for short-term traders. This fee may be in addition to any transaction fee and applicable redemption fees charged by the fund. Fund shares that are purchased prior to the participation of a fund in the NTF program will be subject to the standard transaction fee.

Transaction fees will not be charged on the redemption of shares of participating NTF program funds that are transferred to your account from another financial institution. The fund must be a participating NTF program fund at the time of the transfer to be eligible for no-transaction fee redemption.

Customer accounts which exhibit a pattern of short-term redemptions may be excluded from participating in the NTF program at the sole discretion of Scottrade. Customer accounts that are excluded from the NTF program will be charged the standard transaction fee on all transactions.

Investors should consider the investment objectives, risks, charges, and expenses of mutual fund carefully before investing. A prospectus contains this and other information about the fund and is available through or through a Scottrade® branch office. The prospectus should be read carefully before investing.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.