In accounting, the term load typically refers to a fee or charge associated with an investment, such as mutual funds.
It is an upfront or ongoing cost incurred by investors when purchasing or selling shares of a fund.
There are two main types of loads: front-end load and back-end load. A front-end load is a fee paid when purchasing the investment, while a back-end load is charged when selling.
These fees are used to cover the fund’s marketing, distribution costs, and management. Load fees can reduce the overall returns on an investment, so investors should consider them when making investment decisions.