Load Fund

Load Fund A mutual, or nay other savings fund which charges a certain amount of money, called load, deducted from the investor’s dues, towards expenses of operating the fund. What the invertor gets at the time of redemption of the fund is a little less than the fund’s net asset value (NAV). Occasionally, the charge is levied a the time of buying into the fund do not usually reveal to the investor the percentage of the load. In the cost of OPEN – ENDED MUTUAL FUNDS, the load can be taken to be the difference in the selling and buying prices of the units. When the load is charged at the time of buying into the fund it is called a front – end load, and when it is charged at the time of exit from the fund, as in Unit Trust, it is a back – end load. See also NO – LOAD FUND.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress