Definition of front-end load in US English:

front-end load


  • The deduction of commission fees and expenses from mutual fund shares at the time of purchase.

    • ‘Class B back-end loads, unlike front-end loads, are not generally tied to the size of the investment.’
    • ‘Investors should know that some mutual funds reduce the front-end load in relation to the size of your investments.’
    • ‘Most load funds now also offer classes of their shares that have 12b - 1 fees but no front-end loads.’
    • ‘Some have front-end loads, some have back-end loads, and some are level-loaded funds.’
    • ‘Some mutual funds reduce the front-end load as the size of the investment increases.’
    • ‘The sad truth is that some index funds actually charge front-end loads, back-end loads and 12b - 1 fees - all of which will eat into your return.’
    • ‘They also pay 0.95% for the basic insurance and 2.5% in front-end loads each time they make a deposit into the mutual fund-like sub-accounts.’
    • ‘Where front-end loads are charged, the rate can vary from dealer to dealer and may be negotiable.’
    • ‘By law, front-end loads cannot be higher than 8.5%, but most fund companies opt for loads lower than the maximum.’
    • ‘Class A shares charge a front-end load that is taken from an investor's initial investment.’
    • ‘That's because many funds with front-end loads are now adding 12b - 1 fees as well.’
    • ‘Investors need to carefully consider this option, since front-end loads will eat into the initial investment.’
    • ‘Dodge teams have been searching for a way to displace some of the front-end load, and this might be the answer.’
    • ‘The lure of plumper commissions prompts salesmen to tout the plans with front-end loads above all others.’
    • ‘With fund share classes that charge front-end loads, you pay the load up-front when you buy the fund.’
    • ‘With these front-end loads, the sales charge is subtracted from your original investment.’
    • ‘Shares with front-end loads are called A shares.’
    • ‘In addition, your front-end load may be reduced if you invest above certain threshold amounts - this is known as a breakpoint discount.’
    • ‘But perhaps surprisingly, front-end loads can be the least expensive if ownership extends for a longer period.’
    • ‘Some writers will advise people that it is usually best to buy the front-end load if you are going to buy a loaded fund, but I won't do that because I believe you should never buy a loaded fund.’