The term 'load' can refer to different concepts in computing and finance. In computing, it involves moving a program from a disk to a computer's memory. In finance, it typically refers to a sales charge paid by an investor when buying shares in a mutual fund.
A load fund is a type of mutual fund that requires investors to pay a sales charge, typically to compensate financial advisors and brokers who sell the fund’s shares.
A no-load fund is a type of mutual fund offered by an open-end investment company that does not impose any sales charge (load) on its shareholders. Investors can buy shares in no-load funds directly from the fund companies, rather than through a broker, as is typical in load funds.
A sales charge is a fee paid on purchasing an investment or product, typically associated with mutual funds, to compensate brokers or financial advisors for their service.
