Spread-Load Contractual Plan

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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.

spread-load contractual plan

A contractual plan for purchasing shares of a mutual fund in which sales charges are not concentrated in the first payment or in the first few payments made by the investor.

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