GulfBase Live Support
Leave a message and our representative will contact you soon
Section: 4 Mutual Funds - Investment Policies
Sub Section: 4 Costs of Investing in Mutual Funds
An individual investor choosing a mutual fund should consider not only the fund's stated investment policy and past performance but also its management fees and other expenses.
i) Front-End Load: A front-end load is a commission or sales charge paid when you purchase the shares of a mutual fund.
ii) Back-End Load: A back-end load is a redemption or exit fee incurred when you sell your shares. Typically, this exit fee declines with the number of years that the investor remains invested with the mutual fund.
iii) Operating Expenses: Operating expenses are the costs incurred by the mutual fund in operating the portfolio, including administrative expenses and advisory fees paid to the investment manager.
iv) Other Charges: These are charges to meet the distribution
costs such as advertising, promotional literature including annual reports and
prospectus, and commission paid to brokers.