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What Is a Sales Load?

By Kristi WaterworthUpdated Nov 21, 2024 at 10:03 AM

Key Points

  • Sales loads are commissions paid when investing in mutual funds, affecting actual investment amounts.
  • Three types of sales loads exist: front-end (deducted initially), back-end (charged at selling), and level (charged periodically).
  • Unlike expense ratios, sales loads are not included in annual operating costs and go to the seller, not the fund.

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