Front-End Load

A fee, usually a percentage, charged to investors of a mutual fund upfront, lowering their overall investment. A Front-End Load is paid when the investor makes his initial investment into the mutual fund where as a Back-End Load is paid when the investor withdraws his investment from a mutual fund.

Loads are also known as sales commissions. Historically speaking there is no direct correlation between paying a load and having a higher return. In fact, most investors believe not paying a load is a more successful way to invest long term.

Related Terms

Popular Articles