A level-load mutual fund is one with no front-end or back-end load that charges a 12b-1 fee in excess of 0.25%
Funds with level loads are sometimes called "C" shares, and they deserve the poor grade. They do not charge a front-end or back-end load. These funds impose a high -- and ongoing -- 12b-1 fee each year. There's no getting away from the lofty annual fees. The longer you hold, the more it hurts. A no-load fund may not charge a 12b-1 fee that exceeds 0.25% per year. Any fund with no front-end or back-end load that charges a 12b-1 fee in excess of 0.25% is considered a level-load fund.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Will Chesapeake Energy Corporation Stock Bounce Back in 2014?
- Don't Touch RadioShack Stock: It's Probably Worthless
- Is It Time to Buy United Technologies Corporation Stock?
- Is This the End of Medical Marijuana?
- Should You Pay Off a Mortgage Early? The Answer May Surprise You!
- Want to Graduate Faster? Consider an Accelerated Bachelor's Degree