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.


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.

  1. Load-Adjusted Return

    A load-adjusted return is how much of a return an investor actually ...
  2. Back-End Load

    A fee (sales charge or load) that investors pay when selling ...
  3. Management Fee

    A charge levied by an investment manager for managing an investment ...
  4. Prospectus

    A formal legal document, which is required by and filed with ...
  5. 12B-1 Fee

    An annual marketing or distribution fee on a mutual fund. The ...
  6. Front-End Load

    A commission or sales charge applied at the time of the initial ...
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