A front-end load is a sales fee or commission you pay upfront when you buy shares of a mutual fund or other investment. This fee reduces the amount of your money that actually gets invested. For example, a 5% front-end load means $5 of every $100 you invest goes to the sales fee, leaving only $95 to buy fund shares.
You decide to invest $1,000 in a mutual fund that has a 4% front-end load. Immediately, $40 goes to the fund company as a fee, and only $960 actually gets invested in the fund. You must wait for your investment to grow enough just to make back that $40 before you see any profit.
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