The chief disadvantage of front-end load funds is that the investor has less money to invest after commissions.

Name: The chief disadvantage of front-end load funds is that the investor has less money to invest after commissions.
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Question

Quizplus · Accepted Answer

If you invest $1000 in a load mutual fund and pay a 5% commission, only 95% will go toward purchasing your shares. Whenever possible, investors are better off using the commission toward the purchase of new shares, rather than the payment of a sales fee.

The Chief Disadvantage of Front-End Load Funds Is That the Investor