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Definition of 'Level Load'
An annual charge deducted from an investor's mutual fund assets to pay for distribution and marketing costs for as long as the investor holds the fund. For the most part, this fee is paid to intermediaries for selling a fund's shares to the retail public.
Also known as a "12b-1 fee".
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Investopedia explains 'Level Load'
Unlike the one-time front-end (Class A shares) or back-end (Class B shares) loads, level loads (Class C shares) are applied annually as a fixed percentage of a mutual fund's average net assets. Also, unlike front-end and back-end sales charges, these 12b-1 fees are included in a fund's operating expenses.
While the load percentage doesn't change, if the net asset value of the fund increases through capital appreciation, the dollar value of the load will actually become more expensive and continuously erode the fund's return.
Total 12b-1 fees are capped by law at 1%. Generally, this fee will be pegged at 0.25%, which allows funds that don't exceed this percentage to be classified as no-load funds. This bit of magic, as well as the dubious necessity for the 12b-1 in a robust mutual fund environment, has put the justification for continued use of level load under considerable consumer and regulatory scrutiny.
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Search results for 'Level Load'
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http://www.investopedia.com/articles/mutualfund/05/shareclass.asp
... Class C Shares Class C shares are a type of level-load fund. This class works well
for individuals who will be redeeming shares in the short term. ...
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http://www.investopedia.com/ask/answers/125.asp
... II; ERP; LIFA Level I; CSC; CPH. Active ... Reprints. Feedback Feedback. What's the
difference between a load and no-load mutual fund? A mutual ...
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http://www.investopedia.com/articles/retirement/09/no-load-annuities-life-insurance.asp
... be Used? The appropriateness of no-load products is largely determined by
the level of sophistication of the consumer. Just as with ...
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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. ...
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http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense
... the back end. With C shares, called "level-load," the year-to-year costs
are usually high but spread out over time. (To learn more ...
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http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense/
... the back end. With C shares, called "level-load," the year-to-year costs
are usually high but spread out over time. (To learn more ...
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http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense/default.asp
... the back end. With C shares, called "level-load," the year-to-year costs
are usually high but spread out over time. (To learn more ...
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http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/mutual-fund-classes-charges-expenses.asp
... This is known as a contingent-deferred sales charge. "C" shares: Known as
"level-load" funds, for which investors pay an annual asset-based fee; ...
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http://www.investopedia.com/ask/answers/09/series7-042809.asp
... LIFA Level I; CSC; CPH. ... 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. ...
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http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/investment-fees.asp
... Series 24; Series 26; Series 55; Series 63. Series 65; Series 66; CFA Level I; CFA
Level II; ... Exam Prep Quizzer; FAQs; Calculators; Study Guide: CFA Level 1. ...
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