Definition: A load is a sales charge assessed by some funds. Despite what you may be told, you receive no benefit from paying the load (there are plenty of no-load mutual funds out there).
Loads vary in costs - at the high end you might see a 8.5% load. Even 1% is significant. Be sure to read "Say No to Loaded Funds."
Loads typically come in three varieties and the funds are typically noted as "Class A," "Class B," and "Class C." The first is a front-end load, where the fee is paid up front (when you buy the fund), the second is a back-end load (you pay on your way out of the fund) and the third is a constant load where you are charged each year.
Also Known As: loaded fund, sales charge, back-end load, front-end load, loaded mutual fund, constant load, class A, Class B, Class C
Examples: Bill purchased the fund without realizing it had an expensive back-end load.
