Load Spread Option

AAA

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 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.

RELATED TERMS
  1. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  2. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  3. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
  4. Open-End Fund

    A type of mutual fund that does not have restrictions on the ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. No-Load Fund

    A mutual fund in which shares are sold without a commission or ...
Related Articles
  1. Mutual Funds & ETFs

    The Advantages Of Mutual Funds

  2. Investing

    What's the difference between a load ...

  3. Chart Advisor

    A Total Stock Market ETF For Any Portfolio

  4. Mutual Funds & ETFs

    What does a mutual fund's beta coefficient ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center