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Finance Dictionary and Glossary of Investment Terms
A mutual fund with shares sold at a price including a large sales charge. This sales fee may range from 3% to as high as 8% of the full purchase.
A mutual fund that sells shares with a sales charge-typically 4% to 8% of the net amount indicated. Some no-load funds also levy distribution fees permitted by Article 12b-1 of the Investment Company Act; these are typically 0. 25%. A true no-load fund has neither a sales charge nor
A mutual fund that charges a commission, or ""load,"" every time you buy new shares. Usually, load funds are purchased through stockbrokers and financial planners.For example, if you invest $10,000 but the broker charges an 8 percent load, only $9,200 of your money will actually be used to buy shares in the fund. Paying a load wouldn''t be so bad if there was any evidence that load funds have outperformed no-load funds, which charge no commissions. However, no such evidence exists. If you don''t need a professional''s help in selecting a fund, choose a no-load fund and save the commission.