Hidden Load
Definition of 'Hidden Load'An undisclosed fee or sales charge, which is often hidden in the fine print of a fund's prospectus or in an insurance contract. In some cases, investors and clients do not realize they are paying the hidden load, as explicit attention is never drawn to the issue. |
|
Investopedia explains 'Hidden Load'A hidden load is a cost that a customer is typically never told about. For example, most investors are unaware of the 12b-1 fee that mutual funds often charge. With this hidden load, the investor will pay an small, annual charge to cover the fund's promotional and advertising expenses. |
Related Definitions
Articles Of Interest
-
Passing The Buck: The Hidden Costs Of Annuities
These may look like good retirement vehicles, but beware of the fees buried in the fine print. -
How To Pick A Good Mutual Fund
Learn how to evaluate mutual funds and find the right one for you. -
Digging Deeper: The Mutual Fund Prospectus
The legal jargon of this document can be daunting. Find out how to get to the important stuff. -
Mutual Fund Basics Tutorial
Learn about the basics - and the pitfalls - of investing in mutual funds. -
Women: Invest In Your Financial Literacy
Learning about money may seem intimidating, but it's not as hard as it looks. -
4 Behavioral Biases And How To Avoid Them
Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio. -
Mutual Fund Ratings: Crucial or Insignificant?
Mutual fund ratings can help investors, but they have their drawbacks as well. -
Multi-Asset Funds Or Your Own Mix?
The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own. -
5 ETFs Flaws You Shouldn't Overlook
Despite their popularity, exchange traded funds have some drawbacks that investors should know about. -
Which Mutual Fund Market Cap Suits You?
Different funds invest in companies with different market caps. Find out which is right for you.
Free Annual Reports