Load-Adjusted Return


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.

BREAKING DOWN '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.

  1. Back-End Load

    A fee (sales charge or load) that investors pay when selling ...
  2. No-Load Fund

    A mutual fund in which shares are sold without a commission or ...
  3. Load

    A sales charge or commission charged to an investor when buying ...
  4. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
  5. Front-End Load

    A commission or sales charge applied at the time of the initial ...
  6. 12B-1 Fee

    An annual marketing or distribution fee on a mutual fund. The ...
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