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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

front-end load  

Definition 1.

A sales charge paid when an individual buys an investment, such as a mutual fund, limited partnership, annuity, or insurance policy. The load is clubbed with the first payment made by an investor, so the total initial payment is higher than the later payments. The purpose of a load is to cover administrative expenses and transaction costs and sometimes to discourage asset turnover. opposite of back-end load.
 

Definition 2.

A mutual fund commission or sales fee that is charged at the time shares are purchased.
 

Definition 3.

The fee applied to an investment at the time of initial purchase, e.g., on a mutual fund purchased from a broker or mutual fund company.
 
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