Load Fund

Load Fund

Mutual fund that charges a sales load or fee when shares are sold. Usually, a 4% to 8% fee may be added to the price based on the net amount indicated. “No-load” funds may also have distribution fees added to the price. These fees (0.25%) are permitted by article 12b-1 of the Investment Company Act. True “no-load” funds have no sales charge or the aggregation that the buyer gets some investment advice or other service justifying the additional fees.

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