Monday, December 27, 2010

Initial Charge

An initial charge is the sales charge payable by investors when they purchase units in an investment fund. The reason for this fee is to cover administration expenses, trading/dealing costs, and often, to compensate the broker/adviser/sales person who sold the product to the client. The initial charge may also be referred to as a front-end load fee, or upfront fee, or sales charge.

Synonyms: Sales charge, Upfront fee, Front-end load fee

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