A load fund is a mutual fund that provides a sales commission to the individual or brokerage firm that markets the fund. This commission is paid to the salesperson out of the investor's initial investment or out of the fund's assets. Therefore, investors should be aware of the sales commission, which can be 1% to 8.5% of the investment, and find out whether the investment is worth the cost or not.

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What Is a Load Fund

Question 25

Multiple Choice

What is a load fund?

A) A fund that that does not offer sales commissions to the marketers of the funds.
B) A fund that provides a sales commission to the individual or brokerage firm that markets the fund.
C) A fund where the management company does not charge a load that they retain.
D) Both a and b.
E) Both b and c.

Correct Answer: