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load spread option

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Load spread option
A method of allocating the annual sales charge on load funds, often through percentage deductions from a customer's periodic fixed payments.
load spread option
The allocation of sales charges on mutual fund shares purchased on a contractual plan over a period of years. Sales charges may amount to as much as 20% of any single year's payments during the first four years, provided the total charges for the four years do not exceed 64% of any single year's payments. Also, the total sales charge cannot exceed 9% of contributions of the total value of the contract.


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