"Load fees" refer to charges or fees imposed on investors when they buy or sell certain investment funds, such as mutual funds or unit trusts. These fees are typically a percentage of the amount invested, and they are designed to cover sales commissions or distribution costs for the investment company or financial advisor.
Full definition
There may be additional costs involved with share purchases and sales such
as load fees or commissions that can be added to the cost basis.
Investment provisions also contain fees that are a lot
like load fees on mutual funds.
For example,
load fees now contribute just 13 basis points to the annualized cost of investing in stock funds [emphasis mine], while fund expense ratios contribute 86 basis points.
Many funds that charge
load fees still have high management and marketing fees.
If the fund
uses load fees to offset the ongoing management fee, then you are correct.
And third, even for purchases outside retirement plans, load funds offer
significant load fee discounts for large investors.
Funds with front -
load fees take a portion of the money initially invested, thus leaving a smaller pool of money that ultimately gets invested.
Many mutual funds
charge load fees, which are a sales or commission charge, usually 1 - 6 % of the transaction, for either buying or selling a share.
Front
end load fee plus large expense ratios and high turnover ahhhhh!
For example, an investor who gives his broker $ 10,000 to purchase shares in a mutual fund with a sales
load fee of 5 % would pay $ 500 to the broker, while the remaining $ 9500 would be used to purchase shares of the fund.
These front -
loaded fees means there's no financial benefit to paying off the loan early.
The typical
load fee varies by insurance company and can range from 4 % to 15 %, with certain insurers reserving the right to raise fees up to 20 %.
Bonds are traded at $ 5.00 per bond with no limits, while mutual funds are priced at $ 9.95 per trade plus
load fees where applicable.
The front
loaded fee model, with incentivized sales people is a scam as far as I am concerned and the results of this survey illustrate just exactly why that is.
The
typical load fee varies by insurance company and can range from 4 % to 15 %, with certain insurers reserving the right to raise fees up to 20 %.
And
load fees also eat into your returns, so we focus on noload funds to help control costs.
This implies that investors paid over $ 70.6 billion in management expenses and
load fees alone in 2006.
Understand
what load fees are, and if any are associated with the fund you are being peddled.
I have been researching this product for the past year and have been working with an agent that specializes in a special use of these that reduces the front
loaded fees significantly and maximizes the cash value of the policy.
Many firms are moving to a front -
loaded fee structure where upwards of 60 % of the money you are setting aside for debt settlement in the first 6 - 18 months goes towards paying the company you are working with.
Accredited Debt Relief complies with the Federal Trade Commission's Telemarketing Sales Rule, which prohibits debt relief services from collecting upfront fees or front -
loading fees into a debt payment program.
That's quite a statement since TASC's former Executive Director, Dave Leuthold, bailed and is now promoting front
loaded fee attorney model debt settlement.
Similar to Fundrise, which Uncles» REITs give investors access to real estate deals without the high dollar commitment typically needed, without being an accredited investor and without paying the high front - end
load fees typically charged by REITs.
There is also the option of a virtual card that costs around $ 2.50, a monthly service fee of $ 1.00, and
loading fee of $ 1, and it also has three options just like the plastic card.
Not all mutual funds
charge load fees, and those that don't are called no - load funds.
The 5 % front
load fee is the BIGGEST RIPOFF in money management today.
Visa debit cards with zero
loading fee — FREE with your Wirex currency account.
In general mutual funds are more expensive because of higher expense ratios (the ongoing annual costs),
load fees (typically 2 to 5 percent of the investment), transaction costs and taxes on short - term capital gains.
The Reach Visa Prepaid Card, for example, charges a $ 9.95 activation fee, a monthly fee of $ 8.95, $ 2.50 ATM fees, and
load fees that depend on what retailer you use to put money on the card.
Typical fees include monthly account fees,
loading fees, and ATM fees.
I never, ever pay
a load fee.
Some funds have
both a load fee and high management fees.