front-end load

Definition

A sales charge paid when an individual buys an investment, such as a mutual fund, limited partnership, annuity, or insurance policy. The load is clubbed with the first payment made by an investor, so the total initial payment is higher than the later payments. The purpose of a load is to cover administrative expenses and transaction costs and sometimes to discourage asset turnover. opposite of back-end load.

Use front-end load in a sentence

It was a front-end load and we were all really happy with it and what it meant for us and our company.

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When he took out insurance to cover his business's infrastructure, Pete was stuck with a huge front-end load cost that he didn't expect.

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Fred trusted the free retirement adviser enough to invest in a mutual fund with a hefty front-end load, but was embarrassed when it underperformed horribly.

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R share contingent deferred sales load (CDSL)