Sales load

A sales load is a fee a buyer of a mutual fund pays a broker.

Expanded Definition

For example, if the fund has a front-end load of 5%, for every $100 you place into the fund, only $95 is invested, with $5 going to the salesperson and/or mutual fund company. The Motley Fool has in the past advised investors to mutual funds with no loads.

Related Terms

• Front-end load
• Back-end load
• No load
• Mutual fund

Related Fool Articles

• Fool.com: Mutual Funds --Costs -- Mutual Fund Loads

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