Load Spread Option
A method of collecting the annual fees from investors in load funds through periodic deductions. These periodic deductions often are taken off of regular investor contributions to the fund to spread out the burden of the load fees over time. Investopedia Says:
With a load spread option, a mutual fund investor is able to contribute a fixed amount of savings to the fund on a periodic basis (e.g. after each employment paycheck) and avoid having to pay a lump-sum load fee each year, since a portion of the fee is paid with each contribution. Related Terms:
Deduction
Expense Ratio
Load Fund
Mutual Fund
No-Load Fund
Open-End Fund |