What does it mean for a mutual fund to have a "load"?

A mutual fund having a "load" refers specifically to a sales charge applied when purchasing or selling shares of the fund. This fee is typically used to compensate brokers or financial advisors who sell the fund. Loads can be classified as front-end loads, which are charged when shares are purchased, or back-end loads, which are applied when shares are sold, often referred to as contingent deferred sales charges.

Understanding this concept is crucial for investors, as loads can impact the overall cost of investing in a mutual fund. Different funds have varying load structures, and knowing whether a fund has a load, and how much it is, can help investors compare the total expenses of different options and make more informed investment decisions.