The word "load," when used to describe mutual funds, refers to the fee or commission that is charged in conjunction with the sale of a particular fund. Load funds include those with a front-end load that is charged when you buy shares and those with a back-end load that is charged when you sell shares.
Payment of the mutual fund load comes from the funds invested; this constitutes a loss to the investor. For this reason, it is generally wise to avoid paying commissions and buy no-load mutual funds directly from a mutual fund company.
We would like your feedback on this Personal Finance Frequently Asked Question.
