For a mutual fund, a load is:
A) the expected return of the fund.
B) the risk of the fund.
C) the fee for managing the fund.
D) the charge for insuring the fund.

Question

Quizplus · Accepted Answer

A load is a fee charged by a mutual fund for its management services. This fee is charged at the time of purchase or sale of the fund's shares, and is typically a percentage of the amount invested. The load helps to cover the costs associated with managing the fund, such as research, administrative expenses, and salaries for fund managers and analysts. It is important to note that not all mutual funds charge a load, and those that do may have different structures and fees.

For a Mutual Fund, a Load Is