front-end load

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Also found in: Financial, Idioms.

front-end load

n.
A fee that a mutual fund charges to an investor when the investor buys shares in the fund.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

front-end load

n
(Banking & Finance) commission and other expenses paid for as a large proportion of the early payments made by an investor in an insurance policy or a long-term investment plan
front-end loading n
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

front′-end` load′


n.
(in a mutual fund) a percentage of the first year's payment used for sales commission and future operating expenses.
Also called front′ load`.
[1960–65]
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
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References in periodicals archive ?
The rule of 78's method generally front loads interest, in comparison to the constant-yield method provided for m Regs.
The accountant must familiarize him- or herself with the difference between front loads, back loads, contingent deferred sales charges, 12b-1 fees, management fees and various classes of stock that an investor can purchase in the same mutual fund.
Although the trend is moving away from front-end funds, even today more than half of load-fund sales are front loaded. However, the front-end cost has drastically dropped over the last several years, from 8.5% of the initial investment to an average of 3% today.[2] Moreover, most funds' load percentages decline as the purchase amount increases, ranging from perhaps 5% on a $10,000 investment to 2% on a $250,000 purchase and 0% on a $1,000,000 purchase.