Allocation Rate

Not to be confused with asset allocation, this is the percentage of the initial investment that goes into a mutual fund after load fees. For example, if a mutual fund has a 5% front load fee then the investor’s allocation rate would only be 95% (100% – 5%). The higher the allocation rate is the better off the investor is.

Example 2: Inital investment $10,000 – $5,000 (5% front load) = $95,000 total allocation (95% allocation rate).