back-end load

Back-End Load

A fee an investor pays when selling a mutual fund within a certain number of years, usually seven.

Notes:

Sometimes in exchange for paying no fees up front, the investor pays an annual fee for marketing and managing that is higher than the fees charged for a front-load fund.

Back-end mutual funds are okay if you plan on investing for the long-term otherwise, you'll pay high commission to withdraw early. Remember that almost all mutual funds charge an annual administration fee that is automatically withdrawn from your account, so back-end funds aren't completely free.

In the U.K., a Back-End Load is called an "Exit Charge."

See also: Exchange Privilege, Front-End Load, Load Fund, Mutual Fund, No-load

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back-end load

See deferred sales charge.