sales load

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Related to sales load: Load Fee

Sales 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

See load.
References in periodicals archive ?
ISLAMABAD -- The Securities and Exchange Commission of Pakistan (SECP) has reduced existing maximum level of sales load, from 5 percent to up to 3 percent, that asset management companies (AMCs)are authorized to charge on sales of mutual fund units.
Treatment of fees and sales load has been consistent across the funds.
While the SEC does not limit the percentage of a sales load fund may charge, the Financial Industry Regulatory Agency (FINRA) imposes limits on some fees.
Mutual fund sales loads should be carefully assessed before making an investment decision.
Unlike traditional life insurance, variable-life policies fully disclose the insurance company's and agent's sales loads, in addition to the costs associated with investment-fund management and operating expenses.
The growth and development of the industry has been associated with a decline in sales loads.
Processing of nightly sales loads has been cut by over 6 hours to as little as 50 minutes.
It has no sales loads, so it produces immediate liquidity and high first-year cash value.
The products offer low policy expenses, no surrender charges or sales loads and full disclosure of all charges.
The rankings assume reinvestment of dividends and capital gains but exclude the effects of any applicable sales loads.
The unit-linked policies are characterized by regular contributions spanning many years with relatively high sales loads and surrender charges that are comparable to those of its competitors.