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Investment

Load Fund

A mutual fund that charges you an extra sales fee (called a load) when you buy or sell shares.

Load funds use the fee to pay financial advisors. No-load funds have zero sales charges and are usually cheaper for do-it-yourself investors.

It's like paying a cover charge to get into a club on top of the normal drink prices.

Real world: A front-end load fund might charge 5% the day you invest, so only $950 of your $1,000 actually buys fund shares.

💡 Avoid load funds unless you have an advisor you really trust — the extra fee can eat years of returns.