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.

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RELATED FAQS
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    A mutual fund is simply a large group of people who lump their money together for a management company to invest. And, like ... Read Answer >>
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    Find out how no-load mutual funds make money, what the purpose of a sales charge, or load, is and why some funds have higher ... Read Answer >>
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