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

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

From Encyclopedia.com

Typically, Class A shares will have front-end load fees that are as high as 5 percent.

From Encyclopedia.com

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

Investors in a mutual fund’s A share class pay a sales load as an upfront cost, called a front-end load.

From Seattle Times

If you pay a front-end load, a percentage of your initial investment goes toward that cost rather than into the fund, meaning that money doesn’t make it into the market at all.

From Seattle Times