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.

References in periodicals archive ?
Front-End Fees Front-end fees can be Front-end underwriting fees in as much as 15% of the the form of a discount may be per-share price.
In addition, there is a front-end fee of 0.50 percent and a renewal fee of 0.25 percent on the loan amount.
Long-term liabilities increased by US$2.6 billion from end-November to register US$81.2 billion due to an increase in the issuance of foreign currency securities by domestic banks and companies as well as an increase in the front-end fee for exports on deferred payment term.
Argus said government approval of the deal was conditioned on securing over $1.5bn of funding for Petrodelta and the payment of front-end fees or bonuses to PDVSA which was not specified.
The front-end fees kept going up until it didn't make sense to keep buying.
The loan carries an interest rate of three-month Libor for US dollars plus a margin of 4% per year and has normal front-end fees.
'Given the volatile nature of equity markets in the current backdrop, mutual funds can act as a good vehicle for diversified investment, especially for small household investors and funds with no front-end fees,' he said.
Although the availability of Spanish-speaking staff was the most important condition for getting their business, focus group participants stated that service and cost, including front-end fees, exchange rate, and back-end fees were nearly as significant.
Indeed, franchising is frequently promoted as a business panacea where the franchisor is almost guaranteed success via access to front-end fees and on-going royalties from franchisees, whilst the latter are claimed to exhibit a far higher success profile than conventional small businessmen due to their access to a `tried-and-tested' or `proven' business formula.
For example, one tax shelter prospectus included the following: Gross proceeds to partnership 100% Less: Selling commissions 8% Estimated organization and selling expenses 4% Acquisition fees 1% Total front-end fees 13% Amount available for investment and working capital 87%
Peck says industries have responded somewhat cautiously - they are looking for assurances that the front-end fees will be equitable.
In many cases these loans were made with an eye principally focused on front-end fees, and without any reasonable assurance of repayment.