Define a front-end sales charge (load).

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Multiple Choice

Define a front-end sales charge (load).

A front-end sales charge is a fee paid at the time you purchase fund units, taken from the purchase amount and reducing how much actually goes into the fund. For example, if you invest 10,000 with a front-end load of 5%, 500 is the sales charge and 9,500 is invested in the fund. This differs from charges assessed when you redeem (back-end loads) or ongoing fees taken from the fund’s returns (such as management fees), or fees unrelated to purchase like simple account maintenance. The defining point is that the charge is paid up front and reduces the amount invested.

A front-end sales charge is a fee paid at the time you purchase fund units, taken from the purchase amount and reducing how much actually goes into the fund. For example, if you invest 10,000 with a front-end load of 5%, 500 is the sales charge and 9,500 is invested in the fund. This differs from charges assessed when you redeem (back-end loads) or ongoing fees taken from the fund’s returns (such as management fees), or fees unrelated to purchase like simple account maintenance. The defining point is that the charge is paid up front and reduces the amount invested.

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