Business, Legal & Accounting Glossary
A hidden load is a charge that an investor pays without realizing it. The charge from a hidden load may be buried in the fine print or otherwise unapparent. One example of a hidden load is an insurance policy sales charge that isn’t explicitly disclosed. Another common example of a hidden load is a 12b-1, a mutual fund fee that can negatively affect your investments since it’s deducted from your returns each year. Sometimes the fee from this hidden load will go towards the aggressive marketing and promotion of the fund’s shares, so it may be of no direct benefit to the investor. It is recommended that investors inspect the mutual fund prospectus carefully to check for a hidden load.
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This glossary post was last updated: 9th February, 2020