Finance · Mutual Funds
Regarding a traditional front-end load mutual fund, when is the load usually incurred, and what happens at redemption?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Incurred monthly based on performance; there is no charge during exit
- 2Incurred annually as a fixed percentage; there is no initial entry charge
- 3Incurred at the time of purchase; there is typically no charge when shares are redeemed✓
- 4Incurred only at redemption; there is no charge at the time of purchase
Correct answer
Incurred at the time of purchase; there is typically no charge when shares are redeemed
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