Business / Taxes / Front-End Load: The load, or sales charge, that you pay when you purchase shares of a mutual fund or annuity is called a front-end load. Some mutual funds identify shares purchased with a front-end load as Class A shares. The drawback of a front-end load is that a portion of your investment pays the sales charge rather than being invested. However, the annual asset-based fees on Class A shares tend to be lower than on shares with back-end or level loads. In addition, if you pay a front-end load, you may qualify for breakpoints, or reduced sales charges, if the assets in your account reach a certain milestone, such as $25,000.
Load Noun Synonyms: pack, pile, stack, heap, fill, lade, stuff, cram, jam, squeeze
Load Verb Synonyms: weight, burden, onus, pressure, encumbrance, millstone, cross, albatross, responsibility, care, anxiety, worry, trouble
Business / Finance / Level Load: A mutual fund that charges a permanent sales charge, usually at some fixed percentage. See: Front-end loads and back-end loads. MORE
Business / Taxes / Back-End Load: Some mutual funds impose a back-end load, or a contingent deferred sales charge, if you sell shares in the fund during the first six or seven years after you purchase them. The charge is a percentage MORE