Load Spread Option


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.

BREAKING DOWN '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.

  1. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  2. No-Load Fund

    A mutual fund in which shares are sold without a commission or ...
  3. Open-End Fund

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

    An investment vehicle that is made up of a pool of funds collected ...
  5. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  6. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
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