Scroll Top

search-icon
    drop-arrow

    Load

    Introduction

    A load is generally a sales cost imposed on investors when they wither purchase or redeem their mutual fund units. The sales charge or commissions can be designed in several ways.

    Mutual fund companies determine this and intermediaries charge this cost by investors on the transactions made by them. Back-end loads and front-end loads are the most common types of sales charges. mutual funds with loads are the opposite of mutual funds with no load.

    How Does a Load Work?

    A load is generally a sales charge that remunerates intermediaries and third parties for issuing mutual fund units. The load differs by the class of shares and is as calculated by the fund houses.

    Fund houses are authorised by regulators to structure their sales charges depending on the share class. Also, fund houses are mandated to provide the schedule of sales charge in their respective prospectus. Loads are either imposed on back-end or front-end level.

    You need to note that once you pay these charges, they are directly routed to the intermediaries and are not accounted for when calculating the Net Asset Value (NAV) of a mutual fund scheme.

    Funds With No Load

    No-load mutual funds are those funds that come with no load attached. There are no sales charge and commission involved in them. This is because there are no third parties or intermediaries involved between the investors and mutual fund companies.

    In the case of no-load mutual funds, the investors directly purchase the fund units from a mutual fund company.

    As there is no mediator involved, sales charges, collected in the form of loads, are not imposed on the investors. Hence, by investing in these funds, investors can save a good amount.

    Furthermore, there are fund plans that are level-load funds in which fee will continue for the duration over which an investor stays invested in the fund scheme.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption