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Load |
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Load The sales fee charged to an investor when shares are purchased in a load fund or annuity. See: Back-end load; front-end load; level load. Load A sales charge or commission one pays for purchasing a mutual fund. The charge is paid to the person(s) who sold the investor shares in the fund. There are three types of load. A front-end load occurs when the shareholder pays the fee when buying into the fund. A back-end load means that the investor pays when selling his/her shares. Finally, an investor with a level-load fund pays periodically throughout his/her time as a shareholder. Studies have shown that load funds perform neither better nor worse than no-load funds.
Load. If you buy a mutual fund through a broker or other financial professional, you pay a sales charge or commission, also called a load. If the charge is levied when you purchase the shares, it's called a front-end load. If you pay when you sell shares, it's called a back-end load or contingent deferred sales charge. And with a level load, you pay a percentage of your investment amount each year you own the fund. Load A load is a sales charge imposed when mutual fund shares are purchased or redeemed. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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