front-end load

American  

[fruhnt-end] / ˈfrʌntˌɛnd /

noun

1. the sales commission and other fees taken out of the first year's payment under a contractual plan for purchasing shares of a mutual fund front-endloadfund over a period of years.

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front-end load British  

noun

1. commission and other expenses paid for as a large proportion of the early payments made by an investor in an insurance policy or a long-term investment plan

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Other Word Forms

• front-end loading noun

Etymology

Origin of front-end load

First recorded in 1960–65

Example Sentences

You do not have to pay a front-end load fee with Class C shares and typically, the backend load will be equivalent to 1 percent or less.

From Encyclopedia.com • Jun. 26, 2018

That would offset the front-end load fees you would pay.

From Encyclopedia.com • Jun. 26, 2018

A 5 percent front-end load means the fund must gain 5.26 percent for the investor to break even.

From US News • Sep. 12, 2016

Generally, Class A shares require a front-end load, though it may be reduced for subsequent purchases after the account reaches a given size.

From US News • Sep. 12, 2016

For buyers who pull out of the front-end load plans in the first year or two�as about one in three do�much of their investment is soaked up by commissions.

From Time Magazine Archive