Front-End Load and Back-End Load Mutual Funds

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Load Funds

Sep 23, 2014

A load fund is a mutual fund that comes with a larger amount of commissions and fees. The fees are paid by the investor and go towards paying the financial advisor or broker. These funds can be either front-end loads (fees paid up front) , back end load (fees paid when stock is sold) or level-end loads (fees paid as long as the fund is held by the investor). These fees are paid as sales commissions in exchange for the advising services provided by the broker or financial advisor. Load funds include stock, bond or commodity mutual funds. Investors that invest in no-load funds do not receive the benefits of advisor advice.