Load Spread Option

Dictionary Says

Definition of 'Load Spread Option'

A method of collecting the annual fees from investors in load funds through periodic deductions. These periodic deductions often are taken off of regular investor contributions to the fund to spread out the burden of the load fees over time.
Investopedia Says

Investopedia explains 'Load Spread Option'

With a load spread option, a mutual fund investor is able to contribute a fixed amount of savings to the fund on a periodic basis (e.g. after each employment paycheck) and avoid having to pay a lump-sum load fee each year, since a portion of the fee is paid with each contribution.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Load Fund

    A mutual fund ...
  2. Mutual Fund

    An investment ...
  3. No-Load Fund

    A mutual fund in ...
  4. Expense Ratio

    A measure of ...
  5. Open-End Fund

    A type of mutual ...
  6. Deduction

    Any item or ...
  7. Smart Money

    Cash invested or ...
  8. Risk

    The chance that ...
  9. Fund Of Funds

    A mutual fund ...
  10. Risk Capital

    Investment funds ...

Articles Of Interest

  1. The Advantages Of Mutual Funds

    Learn how to get diversification, liquidity and professional management at an affordable price.
  2. What's the difference between a load and no-load mutual fund?

  3. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  4. 12b-1: Understanding Mutual Fund Fees

    Many mutual funds charge investors a 12b-1 fee to pay for marketing and promotion expenses.
  5. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  6. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  7. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  8. Tips For CFPs Looking To Building A Portfolio For Clients

    Here is some useful advice for CFPs when it comes to building portfolios for clients.
  9. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  10. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center