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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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.
Thus, attempts to expand too quickly or, alternatively, to simply generate profits through the accumulation of once-and-for-all front-end fees, will act to the detriment of franchisees.
For marketing advantage or minimizing possible front-end fees, California coffee companies and their suppliers are giving some serious thought to the innovative and recyclable packaging.
In many cases these loans were made with an eye principally focused on front-end fees, and without any reasonable assurance of repayment.