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Sales Load

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia 0.01 sec.
Sales 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.

sales load
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Mutual fund sales loads should be carefully assessed before making an investment decision.
So if you invest $1,000 in a mutual fund with a 3% sales load, this means that $30 of your money is taken out to pay a commission, and just $970 is actually being invested.
Keep in mind that nonresidents typically pay higher fees than residents and that it is desirable to avoid paying sales loads.
 
 
 
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