Sales Fees

Sales fees, often referred to as sales charges or loads, are fees charged by mutual funds and some other investment products when an investor buys or sells shares. These fees are typically a percentage of the total investment amount and can be categorised mainly into two types: front-end loads and back-end loads.

Front-end loads are charges paid at the time of purchase, effectively reducing the amount of the initial investment.

Back-end loads, or deferred sales charges, are fees that investors pay when they sell their shares, and these can decrease over time the longer the investor holds the shares. This type of fee is designed to discourage short-term trading and to incentivise longer holding periods.