Level load
(redirected from Level-Load)Level load
A mutual fund that charges a permanent sales charge, usually at some fixed percentage. See: Front-end loads and back-end loads.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Level Load
A load for a mutual fund that is paid on an ongoing basis. A load is a fee that the investor pays in order to maintain his/her investment in a mutual fund; it is designed to cover the fund's costs; one may think of it as a sales fee. A level load contrasts with a front-end or a back-end load, in that it is paid in (usually annual) increments over the period of time during which one owns shares in the fund. See also: C-Share.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Level load.
Some load mutual funds impose a recurring sales charge, called a level load, each year you own the fund rather than a sales charge to buy or sell shares.
The level-load rate is generally lower than the sales charge for front- or back-end loads. But the annual asset-based management fee on these funds is higher than for front-load funds.
This means the total amount you pay over time with a level load can be substantially more than a one-time sales charge, especially if you own the fund for a number of years.
If a fund company offers you a choice of the way you prefer to pay the load, level-load funds are generally identified as Class C shares. Front-end loads are Class A shares and back-end loads are Class B shares.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.