Wednesday, December 29, 2010

Level Load

The term level load refers to a mutual fund in the US which charges no front or back end load, but charges a 12b-1 fee in excess of 0.25%. [Note, "no-load" funds are not able to charge a 12b-1 fee greater than 0.25% per annum. Level loads, in contrast to a front end load or a back end load is a constant expense for fund investors (rather than a one-off at the beginning or end of the investment). Some mutual funds issue "C Shares" as the share class with the level load fee structure. Investors should factor in the impact of fees on their investments.

Synonyms: Level fee

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