 |
Definition of 'Front-End Load'
A commission or sales charge applied at the time of the initial purchase for an investment, usually mutual funds and insurance policies. It is deducted from the investment amount and, as a result, it lowers the size of the investment.
|
 |
Investopedia explains 'Front-End Load'
Front-end loads are paid to investment intermediaries (financial planners, brokers, investment advisors) as sales commissions. As such, these sales charges are not part of a mutual fund's operating expenses. It is argued that a load is a cost that investors incur for obtaining an investment intermediary's expertise in selecting appropriate funds for clients. It is a matter of record that load funds do not outperform no-load funds.
Generally, the sales charge on a load mutual fund will be waived if such a fund is included as an investment option in a retirement plan such as a 401(k).
|
Search results for 'Front-End Load'
-
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 ...
-
http://www.investopedia.com/ask/answers/09/series7-042809.asp
... Compute the offering price for a mutual fund with NAV of $1,200,000,000,
an 8% front-end load, and 1,000,000 shares outstanding. ...
-
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. ...
-
http://www.investopedia.com/articles/mutualfund/05/shareclass.asp
... Let's examine each in turn. Class-A Shares Class-A shares charge a
front-end load that is taken off your initial investment. Pros: ...
-
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. Front-end load
is charged when a purchase is made for the investor's portfolio. ...
-
http://www.investopedia.com/university/mutualfunds/mutualfunds2.asp
... If you invest $1,000 in a mutual fund with a 5% front-end load, $50 will pay
for the sales charge, and $950 will be invested in the fund. ...
-
http://www.investopedia.com/exam-guide/series-26/investment-companies/mutual-fund-pricing.asp
... shares of mutual funds with high 12b-1 fees will usually wind up paying more in
sales charges than if they had originally bought shares with a front-end load. ...
-
http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/sales-charges-expenses.asp
... shares of mutual funds with high 12b-1 fees will usually wind up paying more in
sales charges than if they had originally bought shares with a front-end load. ...
-
http://www.investopedia.com/ask/answers/136.asp
... These different classes - 'A', 'B' and 'C' - all are characterized by their different
load structures. 'A' shares generally denote a front-load charge. ...
-
http://www.investopedia.com/university/tables/tables4.asp
... For 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 ...
|
|
