Best Guide to Mutual Funds
Fundamentals of Mutual Funds
Types of Mutual Funds
Investment and Money market
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Sales Loads

In the simplest terms, a load is the sales charge applied to mutual fund sales. A mutual fund may or may not carry a "load" and there are different variations of a "load." For instance, a front end load simply means that on the day an investor buys into a mutual fund they pay a sales fee of anywhere from 3 percent to 8.5 percent.

Another variation is the contingent deferred sales load or back-end load. This is still a full sales load but the payment is deferred over time or is payable as an exit fee should the investor sell their shares within the first year. Some funds purport to waive the back-end load if the investor holds their shares for six years or longer. Finally, in the case of a "level load" a fee of approximately one percent is charged for each year shares in the fund are held.

Statistics do not show any difference in year-to-year performance between load and no-load funds.

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