The mutual fund charges a back-end load fee
A back-end load is a fee paid by investors when selling mutual fundshares, and it is expressed as a percentage of the value of the fund's shares. A back-end load can be a flat fee or gradually decrease over time, usually within five to ten years. In the latter case, the percentage is highest in the first year and falls until it … See more A contingent deferred sales chargeis a type of back-end load that depends on the holding period. Back-end loads are also known as back-end sales charges. Another term for a back-end … See more Class A shares usually charge a front-endload, which comes out of the initial investment. Class B shares typically don't have the front-end load. Instead, they may carry a back-end load … See more Back-end loads are generally an unnecessary expense for most investors in the 21st century. Exchange-traded funds(ETFs) and no … See more Although back-end loads are frequently criticized, they do have some advantages: 1. Back-end loads discourage overtrading and unnecessary early withdrawals. 2. Unlike front-end loads, … See more WebThe mutual fund _____ charges a back-end load fee. True or False: You can generally exp back-end load fees to outperform funds that do not charge these fees. False True Suppose MajTrk has a front-end This question hasn't been solved yet Ask an expert Question: The following table presents information on four different open-end mutual funds.
The mutual fund charges a back-end load fee
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Web“loads,” are included in “shareholder fees.” By law, total front-end and back-end loads, which are explained below, may not exceed 8.5 percent of your initial investment, although most funds charge far less than the maximum. Front-end load (sales charge when you buy) A “front-end load” is the mutual fund industry’s term for a sales WebJun 3, 2024 · Back-end load or deferred sales charge (DSC) – Some funds used to charge a fee of up to 6% when you sold your units or shares. As of June 1, 2024, the deferred sales charge option is banned. Here’s how it generally worked: The longer you hold a fund with a DSC, the less you’ll be charged when you sell it.
WebFeb 19, 2016 · A fee paid at the time of purchase is called a “front-end load,” while a fee paid at the time of sale is (you guessed it) a “back-end load.” Funds that don't set sales loads … WebWhat's the most I can expect to pay in fees? % in back-end load SUSAN: If a fund charges a 2.5% front-end load and a 4% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. RAPHAEL: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. Previous question Next question
WebMany back-end load structures are progressive, meaning that you might pay a 5.75% charge if your shares are redeemed within one year of the purchase date, a rate that would decline by a percentage point each year thereafter. These loads are normally applied to the lesser of original share price or current market value. WebMar 3, 2015 · A load fund is a mutual fund that comes with a larger amount of commissions and fees. The fees are paid by the investor and go towards paying the financial advisor or …
WebMay 10, 2024 · Fortunately, the back-end load declines gradually while you hold the fund, and eventually the load goes all the way down to zero. However, one drawback of B share funds is that they usually have something called a "12b-1 fee," which increases the expenses of the fund. 12b-1 fees are paid out of mutual fund or ETF assets to cover the costs of …
WebMar 31, 2024 · Front-end loads: These are initial sales charges, or upfront fees. The fee will be subtracted from your investment in the fund, so if you invest $5,000 and the fund has a front-end... shiny pancham pokemon goWebJan 1, 2024 · A no-load fund has no sales charge, and a fund’s 12b-1 fees may not exceed 0.25% in order to be considered no-load. At first glance the choice between load and no … shiny palkia spriteWebDec 21, 2024 · A back-end load fund is made up of Class B shares, charging sales commissions when shares of a fund are sold. A back-end load may be a flat fee or a … shiny palkia shieldWebMar 3, 2015 · A load fund is a mutual fund that comes with a larger amount of commissions and fees. The fees are paid by the investor and go towards paying the financial advisor or broker. These funds can be either front-end loads (fees paid up front) , back end load (fees paid when stock is sold) or level-end loads (fees paid as long as the fund is held by ... shiny palkia pearlWebThe $500 sales load is first deducted from the $10,000 check (and typically paid to a selling broker), and assuming no other front-end fees, the remaining $9,500 is used to purchase … shiny palkia origin formshiny panpourWebJan 12, 2001 · Enter the percentage deferred sales charge after years. (For example, type 5 and press ENTER on your computer.) %. Start over. New Fund. shiny pansear