Wednesday, December 29, 2010

Load Funds

A load fund refers to a mutual fund which has a sales charge. These sales loads can either be on the front end as a one off fee on new investments, on the back end as an exit fee, or as a constant level fee. Funds charge loads in order to pay commissions and incentives to distribution partners such as advisors, brokers, and other sales people. The opposite is a No-load fund, which has no sales charge.

Synonyms: Sales fee

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