Pronunciation: [lˈə͡ʊd fˈʌnd] (IPA) 
The word "load fund" is spelled as /loʊd fʌnd/. The first syllable is pronounced with a long "o" sound as in "go" followed by the "d" sound. The second syllable has a short "u" sound as in "umbrella" and ends with the "nd" sound. A load fund is a type of mutual fund that has a sales charge or commission paid by the investor. The spelling of the word accurately reflects its pronunciation in English.
A load fund is an investment fund that imposes a sales charge or fee on investors when they buy or sell shares in the fund. It is a type of mutual fund where investors are required to pay a commission or load, which is a percentage of their investment, to the fund company or financial advisor.
The sales charge, or load, for load funds is typically used to compensate the financial advisors or brokers for their services in guiding investors towards suitable investment options. This fee is deducted from the initial investment or added to the sale proceeds when shares are sold. The load can be described as a front-end load or a back-end load, depending on when the fee is paid.
Front-end load funds charge the sales commission upfront and are deducted from the initial investment. Back-end load funds, on the other hand, do not impose a sales charge upfront but charge a fee when shareholders redeem their shares. These funds often have a contingent deferred sales charge (CDSC) that decreases over time.
Load funds are typically recommended by financial advisors or brokers who provide investment advice and assistance to investors. The load helps compensate these professionals for their expertise and services provided. Investors should carefully consider the sales charge associated with load funds before investing, as it can have a significant impact on the overall return and performance of their investment portfolio.
The term "load fund" is a combination of two separate words, "load" and "fund". Here is the etymology of each word:
1. Load: The word "load" originated from Middle English and has its roots in the Old English word "lad", which meant a "burden" or "something to be carried". Over time, it developed into the word "load", referring to the weight or burden placed on someone or something. In a financial context, specifically in the investment industry, "load" refers to a sales charge or fee imposed on an investor when buying or selling shares of a mutual fund.
2. Fund: The word "fund" is derived from the Latin word "fons" or "fundus", which originally meant a "source" or "bottom". It then evolved into the Old French word "fondre", meaning "to melt" or "to pour".
