front-end load Definition

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.

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front-end load is ...

... part of the Insurance, Mutual Funds and Retirement subjects.

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