| Back End Load |
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This
means you will be charged a fee to get out of the fund within a certain
number of years, usually seven.
Sometimes in exchange for paying no fee up front the investor pays
an annual fee for marketing and managing that is higher than the one
charged for a front load fund.
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Back-end
mutual funds are ok if you plan on investing for the long-term, if
not you will pay high commission to withdraw early. Remember that
almost all mutual funds charge an annual administration fee that is
automatically withdrawn from your account, so back-end funds aren't
totally free investment you are still paying money for their service. |
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Dictionary
