Finance · Mutual Funds

In the context of open-end investment companies (mutual funds), what constitutes the 'load'?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The total interest payable on borrowings made by the investment company
2The portion of the offering price that exceeds the net asset value (NAV) of the underlying assets✓
3The penalty fee applied only when switching between fund options
4The annual management fee charged by the fund manager

Correct answer

The portion of the offering price that exceeds the net asset value (NAV) of the underlying assets

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