Load-Adjusted Return

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Definition of 'Load-Adjusted Return'

A load-adjusted return is how much of a return an investor actually sees, after investment fees charged to buy and sell shares of mutual funds are subtracted from investment returns. If an investor puts $6,000 into a no-load mutual fund and earns a 10% return the first year, he has earned $600 if he decides to cash out. But if the mutual fund charges a 1% front-end load to buy shares, the investor would lose $60 when he purchased, leaving $5,940 to invest. The same 10% return would then earn him only $594.
Investopedia Says

Investopedia explains 'Load-Adjusted Return'

Loads, or fees charged by some mutual funds for buying and selling shares, are like all other investment fees in that they have a significant impact on an investor's returns, especially over the long run. For this reason, many investors advocate sticking to mutual funds that have no loads, no 12b-1 fees and very low expense ratios.

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'Load-Adjusted Return'

  • The Lowdown On No-Load Mutual Funds

    http://www.investopedia.com/articles/mutualfund/07/no-load.asp
    ... funds over time because the fees won't eat away at the overall net return. ... Israelsen
    compared the load-adjusted performance of load mutual funds to that of no ...

  • Mutual Fund Performance Data | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp9-perform-metrics/performance-data.asp
    ... ratio calculation, are included. Morningstar and Value Line mutual fund
    reports all provide load-adjusted total return figures. ...

  • Technology Sector Funds

    http://www.investopedia.com/articles/mutualfund/08/tech-sector-funds.asp
    ... return in 2003 above 65%, but as of 2008 can only report an average annual total
    return since its inception in 1996 of about 7.5% on a load-adjusted basis. ...

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