Definition, Meaning & Synonyms
back-end-load
noun
/ˈbækˈɛnd loʊd/
Definition
A fee charged to an investor when they sell their shares of a mutual fund or another investment after holding it for a predetermined period.
Examples
- Many investors prefer no-load funds to avoid back-end-load charges.
- The mutual fund had a back-end-load of 5% if shares were sold within the first five years.
Meaning
Back-end-load is typically applied to mutual funds and serves as a way to discourage investors from taking their money out too soon.
Synonyms
- Deferred sales charge
- Exit fee
- Sales load
