A load is a sales charge or commission payable to the person who sells you a mutual fund. A load fund is a mutual fund on which such fees are charged.
Typically, a financial professional sells a load fund. Some load funds are sold by full-service brokers — salespeople who advise you on your investment choices, provide you with brochures and research reports, and pocket a commission in return for their work. Financial planners, bankers, insurance agents, and other financial professionals also sell load funds.
All load funds carry attached sales commissions, usually representing about 5% of your investment. For example, if you invest $1,000 in a certain load stock fund with a 5.75% sales charge, $57.50 comes off the top to pay the broker. The remaining $942.50 is your investment in the mutual fund itself.
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