Front-end load

(redirected from front-end loading)
Also found in: Dictionary, Wikipedia.

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 ?
To help remedy this situation, an engineering software suite must contain a basic engineering collaboration system to help with the front-end loading process and enhances communication of the project scope and the process flow diagram (PFD) between the owner-operator and the E&C.
As an industry, we can achieve this goal, building frontier projects on a high level of front-end loading and a complete understanding of the risks and costs involved," he said.
For those people prepared to deal online, substantial savings can be made on initial up-front charges (also known in the trade as front-end loading), besides annual management fees.
When planning a project, the team should remember that the most effective projects employ front-end loading (FEL) and use multidiscipline teams.
So when his group starts to offer funds next year there will be no front-end loading charge.
The company is spending about $40 million on mobile equipment, including the newest models of front-end loading scoop trains and 50-tonne dump trucks, worth about one million dollars each to haul off waste rock and ore.
Front-end loading is further eased with the large flip-nose door, and the aircraft's unique ability to "kneel" on its front undercarriage.
In recent years, barfeeds and magazine-type devices have automated front-end loading of even the most productive lathes.
It consists of small single rear axle Rover trucks that carry and/or unload two to three cu yd front-end loader bins from residential or commercial areas, and haul these bins, when full, to street parked front-end loading large compaction containers or closed large body compaction trucks.
Front-end loading should be used, consistent with the contract's restraints.
To reduce their risks, some lessors also resort to "front-end loading," requiring a deposit equivalent to the cost of adaptations.
Australian beef for example with exports to Japan last year worth $1.4 billion will be a major beneficiary with the 38.5 per cent tariff to be halved over 15 years, with heavy front-end loading, including an eight per cent cut in the first year.