Load

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Load

The sales fee charged to an investor when shares are purchased in a load fund or annuity. See: Back-end load; front-end load; level load.

Load

A sales charge or commission one pays for purchasing a mutual fund. The charge is paid to the person(s) who sold the investor shares in the fund. There are three types of load. A front-end load occurs when the shareholder pays the fee when buying into the fund. A back-end load means that the investor pays when selling his/her shares. Finally, an investor with a level-load fund pays periodically throughout his/her time as a shareholder. Studies have shown that load funds perform neither better nor worse than no-load funds.

load

The sales fee the buyer pays in order to acquire an asset. This fee varies according to the type of asset and the way it is sold. Many mutual funds impose a sales charge. As a result of the load, only a portion of the investor's funds go into the investment itself. Also called front-end load, sales load.

Load.

If you buy a mutual fund through a broker or other financial professional, you pay a sales charge or commission, also called a load.

If the charge is levied when you purchase the shares, it's called a front-end load. If you pay when you sell shares, it's called a back-end load or contingent deferred sales charge. And with a level load, you pay a percentage of your investment amount each year you own the fund.

load

the work which is assigned to a workstation (machine or operative) during a specified period of time. See PRODUCTION-LINE BALANCING.

Load

A load is a sales charge imposed when mutual fund shares are purchased or redeemed.
References in periodicals archive ?
Reflects the maximum initial sales charges in the first year.
For a load fund, a sales charge or "load," such as 6% of the amount invested, would be deducted directly at the time of sale and used to compensate the sales representative and the selling organization.
A deferred sales charge is generally five to six percent over a varying number of years.
If "B" shares are purchased, there is no initial sales charge; however, the investor agrees to pay a back-load charge of possibly 5% of the original investment or market value at the time of redemption.
The regulatory agencies have also attempted to give potential investors a clearer idea of what their charges will be by requiring a table that hypothetically estimates the dollar cost of all charges for all classes, including sales charges and fund expenses, with (and sometimes without) redemption, for a $1,000 investment earning a five percent hypothetical annual return over different time periods.
Front-end sales charge: This fee is charged when mutual fund shares are purchased.
The proposal encourages funds to continue their practice of giving investors alternatives to paying sales charges. Some of these include paying charges at the time of purchase, redemption or paying a continuing fee.
These rights use breakpoints to reduce sales charges. Rights of accumulation differ from a "letter of intent" (see page 179) in that they do not require any stated amount to be invested over any particular period of time, and such rights only apply to cumulative purchases above the break points.
Unitholders will not be required to pay any redemption fees, sales charges or other fees associated with the termination, it added.
One of the most discussed items of the mutual fund universe are Loads; known as mutual fund sales charges. There are different kinds of Loads, but they are all similar, and the end result is that the loads take money out of your return before, during, or after your investment in the fund.
"The ongoing sales charges would be capped at a certain point, which would differ from fund to fund," but the caps would be either the lower of the fully loaded A share mutual fund or 6.25% under the FINRA rule, Bellaire explains.
The SEC's proposal would: limit fund sales charges; improve transparency of fees; encourage retail price competition; and revise fund director oversight duties, according to the regulator.