Level load

Level load,

Definition of Level load:

  1. A level load an annual charge deducted from an investor's mutual fund assets to pay for distribution and marketing costs for as long as the investor holds the fund. For the most part, this fee goes to intermediaries who sell a fund's shares to the retail public. The level load will reduce the bottom line profit margin from an investment.

  2. Charge or fee that remains fixed over a range.

  3. Output rate that balances different production rates, thus eliminating bottlenecks and minimizing work-in-process inventory.

  4. A level load is also known as a "12b-1 fee." The fee is an expense the investor pays for holding this particular type of security. All loads, including front-end and back-end loads, are a type of sales charge imposed onto the purchase of a mutual fund.

How to use Level load in a sentence?

  1. Level loads are fees paid for the sale of mutual fund shares by investors as a fixed percentage throughout the year.
  2. Load fees cover the cost of running the mutual fund and include advisory costs, marketing, distribution and advertising.
  3. Shares with level loads are designated as Class C shares.
  4. These can be contrasted with front-end or back-end loads that charge investors either at point of purchase or sale.

Meaning of Level load & Level load Definition