Sales Load: What It Is, Types, Example

What Is a Sales Load?

By Kristi Waterworth – Updated 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.

When you invest in a mutual fund, there are an array of fees involved, one of which is the sales load, sometimes called a sales charge. If you're asking yourself, "What is a sales load?" you've come to the right place. We'll discuss this fee in depth below.

Loading paragraph...

Two people in a meeting, with one looking at some papers in a file folder. — Image source: Getty Images.

Loading image...

Loading paragraph...

Related investing topics

Loading paragraph...

5 Best Dividend Mutual Funds

Want to own a diversified collection of stocks that offer dividends? These may be a good fit.

Investing in Cryptocurrency Mutual Funds

Cryptocurrency mutual funds, a recent way to invest in digital currency, have their ups and downs.

Index Funds vs. Mutual Funds: What Are the Differences?

Index funds and mutual funds both pool investors' money to buy many different securities. Learn how these investments work.

Loading hub_pages...

Loading paragraph...

About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

The Motley Fool has a disclosure policy.