load spread option

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.

Spread-Load Contractual Plan

An agreement in which the load of a mutual fund is spread out evenly over a period of time. That is, the buyer of shares in the mutual fund does not pay the load the first time he/she buys shares. Rather, he/she pays a portion of the load each time he/she buys more shares until the load is paid in full. This assumes the buyer consistently buys shares over an extended time. It is also called a load spread option.

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.
References in classic literature ?
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