A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Load FundA mutual fund that charges a sales fee when you buy or sell, reducing the amount that goes to work for you.
- No-Load FundA mutual fund that does not charge a sales commission when you buy or sell shares.
- Expense RatioThe yearly fee a fund charges, shown as a percentage of your investment, that covers its operating costs.
- Back-End LoadA sales fee charged when you sell shares of certain mutual funds, sometimes shrinking the longer you hold.
- Mutual FundA pooled investment where many people's money is combined and managed together to buy a mix of stocks or bonds.
- Management FeeThe charge a fund or advisor collects for managing your investments, often a yearly percentage of your balance.
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Plain-English education — not personalized legal, tax, or investment advice.