Front-end load

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Front-end load

The fee applied to an investment at the time of initial purchase, e.g., on a mutual fund purchased from a broker or mutual fund company.

Front-End Load

A sales fee in a mutual fund that one pays when one buys shares in the fund. That is, when an investor buys a share in a mutual fund with a front-end loan, he/she agrees to pay a third party, usually a financial institution or broker, a certain percentage of the share's value. Unlike back-end load, the shareholder does not pay the fee upon sale, but rather upon purchase. A share in a mutual fund with a front-end load is called an A-share. See also: B-Share, C-Share, No-Load Fund, CDSC.

front-end load

See load.

Front-end load.

The load, or sales charge, that you pay when you purchase shares of a mutual fund or annuity is called a front-end load. Some mutual funds identify shares purchased with a front-end load as Class A shares.

The drawback of a front-end load is that a portion of your investment pays the sales charge rather than being invested. However, the annual asset-based fees on Class A shares tend to be lower than on shares with back-end or level loads.

In addition, if you pay a front-end load, you may qualify for breakpoints, or reduced sales charges, if the assets in your account reach a certain milestone, such as $25,000.

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(2a) EXPENSE RATIO =a + [b.sub.1](BOARD QUALITY) + [b.sub.2](CORPORATE CULTURE) + [b.sub.3](MANAGERIAL INCENTIVES) + [b.sub.4](REGULATORY ISSUES) + [b.sub.5](ASSETS) + [b.sub.6](AGE) + [b.sub.7](BROKERAGE AVAILABILITY) + [b.sub.8](CASH FLOWS) + [b.sub.9](DEFERRED LOAD) + [b.sub.10](FRONT END LOAD) + [b.sub.11](FUND FAMILY) + [b.sub.12](FUND FOCUS) + [b.sub.13](INSTITUTIONAL) + [b.sub.14](STOCK) + [b.sub.15](STD DEV) + [b.sub.16](TOTAL RETURN) + [b.sub.17](TURNOVER RATIO) + [b.sub.18](12B-1 PLAN) + e
Mutual fund investment in Fixed Income would yield stable return, however, the front end load and management fees would reduce the net return.
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