Load Fund

A mutual fund that comes with a sales charge or commission. The fund investor pays the load, which goes to compensate a sales intermediary (broker, financial planner, investment advisor, etc.) for his or her time and expertise in selecting an appropriate fund for the investor. The load is either paid up front at the time of purchase (front-end load), when the shares are sold (back-end load), or as long as the fund is held by the investor (level-load).




If a fund limits its level load to no more that 0.25% (the maximum is 1%), it can call itself a "no-load" fund in its marketing literature.

Front-end and back-end loads are not part of a mutual fund's operating expenses, but level-loads, called 12b-1 fees, are included. The record shows that the performance of load and no-load funds is similar.


Investment dictionary. . 2012.

Look at other dictionaries:

  • load fund — load′ fund n. bus a mutual fund that carries transaction charges, usu. a percentage of the initial investment …   From formal English to slang

  • Load fund — A mutual fund with shares sold at a price including a large sales charge typically 4% to 8% of the net amount indicated. Some no load funds have distribution fees permitted by article 12b 1 of the Investment Company Act; these are typically 0.… …   Financial and business terms

  • load fund — A mutual fund that sells shares with a sales charge typically 4% to 8% of the net amount indicated. Some no load funds also levy distribution fees permitted by Article 12b 1 of the Investment Company Act; these are typically 0. 25%. A true no… …   Financial and business terms

  • load fund — noun A mutual fund such that it charges sales load. Ant: no load fund …   Wiktionary

  • load fund — a mutual fund that carries transaction charges, usually a percentage of the initial investment. * * * …   Universalium

  • load fund — / ləυd fʌnd/ noun a fund sold through a broker, with a high initial management charge or commission …   Dictionary of banking and finance

  • load fund — Fin a unit trust that charges a fee for the purchase or sale of shares. See also noload fund …   The ultimate business dictionary

  • load fund — a mutual fund that carries transaction charges, usually a percentage of the initial investment …   Useful english dictionary

  • No-Load Fund — A mutual fund in which shares are sold without a commission or sales charge. The reason for this is that the shares are distributed directly by the investment company, instead of going through a secondary party. This is the opposite of a load… …   Investment dictionary

  • no-load fund — A mutual fund that does not impose a sales commission. Related: load fund, no load mutual fund. Bloomberg Financial Dictionary * * * no load fund no load fund ➔ fund1 * * * no load fund UK US noun [C] FINANCE …   Financial and business terms

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