Back-End Load

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Dictionary Says

Definition of 'Back-End Load'

A fee (sales charge or load) that investors pay when selling mutual fund shares within a specified number of years, usually five to 10 years. The fee amounts to a percentage of the value of the share being sold. The fee percentage is highest in the first year and decreases yearly until the specified holding period ends, at which time it drops to zero.  

Also known as a "contingent deferred sales charge or load." 
Investopedia Says

Investopedia explains 'Back-End Load'

The back-end load is a type of sales charge that is used with mutual funds that have share classes, which in this case are identified as Class-B shares. Class-A shares charge a front-end load, which is taken from an investor's initial investment. Class-C shares are considered to be a type of level-load fund - no front-end and low back-end loads, but the fund's operating expenses are high. In all cases, the load is paid to a financial intermediary, and is not included in a fund's operating expenses.

In essence, funds with share classes carry sales charges (as opposed to no-load funds). The class you choose is what determines how much and when you pay. In employer-sponsored retirement plans, the loads are generally waived.
Search results for

'Back-End Load'

  • What's the difference between a load and no-load mutual fund?

    http://www.investopedia.com/ask/answers/125.asp
    ... redeem the mutual fund. A front-end load is the opposite of a back-end
    load and means the fee is charged up front. A no-load fund ...

  • The ABCs Of Mutual Fund Classes

    http://www.investopedia.com/articles/mutualfund/05/shareclass.asp
    ... Small Back-End Load - The back-end load is typically only 1%. Opportunity to Avoid
    back-End Load - The back-end load is normally removed after the shares have ...

  • Mutual Funds: The Costs | Investopedia

    http://www.investopedia.com/university/mutualfunds/mutualfunds2.asp
    ... In such a fund you pay the a back-end load if you sell a fund within a certain
    time frame. A typical example is a 6% back-end load ...

  • Where do I look for fees that I am charged on investments? What ...

    http://www.investopedia.com/ask/answers/10/where-find-investment-fees.asp
    ... There are two types of load fees: front-end load and back-end load. ... Back-end load
    is charged when a sale is made from the investor's portfolio. ...

  • The Lowdown On No-Load Mutual Funds

    http://www.investopedia.com/articles/mutualfund/07/no-load.asp
    ... see Stop Paying High Fees.) No-Load Mutual Funds Investors obtain no-load mutual
    funds at NAV without any of the front-end, back-end or level sales charges. ...

  • Series 6 Study Guide - Investment Companies - Sales Charges and ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/sales-charges-expenses.asp
    ... investor has held the shares. The amount of this back-end load decreases
    the longer the investor owns the shares. As long as the ...

  • Series 26 Study Guide - Investment Companies - Mutual Fund Pricing ...

    http://www.investopedia.com/exam-guide/series-26/investment-companies/mutual-fund-pricing.asp
    ... investor has held the shares. The amount of this back-end load decreases
    the longer the investor owns the shares. As long as the ...

  • The Future Of Mutual Funds

    http://www.investopedia.com/articles/mutualfund/10/future-mutual-funds.asp
    ... rather than paying towards upfront fees. Nonetheless, the back-end load
    fees were judged to be excessive, given the advantages. ...

  • What do the different types of mutual fund classes mean?

    http://www.investopedia.com/ask/answers/136.asp
    ... along a schedule so that the longer you hold the fund, the smaller the deferred
    load becomes. When the deferred fund no longer has back-end charges, it will ...

  • Financial Tables: Mutual Fund Table | Investopedia

    http://www.investopedia.com/university/tables/tables4.asp
    ... example, a "*" means the fund is retirement account eligible, "N" means no load,
    "F" is front-end load, and "B" means the fund has both front and back-end fees ...

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