A front-end load is a sales charge that is paid by the investor at the time of purchase.
Funds with front-end loads are sometimes called "A" shares -- though they don't always make the grade. These funds charge an initial sales commission that typically ranges from 2.0-8.5% of the investment. The fee may also apply to reinvestments of dividends, interest, and capital gains.
These funds usually also charge a 12b-1 fee.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Here?s What Sent LINN Energy LLC Rocketing 23% Higher in April
- Check Point Software Technologies Ltd. Goes for Growth
- Understanding Retirement Plan Fees and Expenses Can Supercharge Your Savings
- 3 Reasons Pioneer Natural Resources' Stock Could Rise Again
- Your Financial Advisor May Be the Biggest Threat to Your Wealth
- 5 Things Eaton Corporation?s Management Wants You to Know