Load funds have a sales charge, commonly referred to as a commission.
This commission is either a front-end sales charge (a fee charged when mutual fund units are bought) or a deferred sales charge (a fee charged when mutual fund units are sold).
If an investor chooses the front-end sales charge, they negotiate a commission with their dealer that ranges from 0% to 5%. This charge is deducted as a percentage of an investor’s total purchase.
If an investor chooses a deferred sales charge option, the mutual fund company that manages and administers the funds deducts what is called a deferred sales charge from the value of units sold if they are sold within a certain number of years (which varies according to the fund type and company). As a result, investors do not pay any commission under this option when they buy the fund. The deferred sales charge is based on the market value of the units and decreases with each year.
Renaissance Investments offers a complete family of load funds to meet the ever-evolving needs of today's investors.