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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

front-end load

See load.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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.
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.
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 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.