Definitions for "Back-End Load"
A 1 to 2% commission on the sale of shares in a mutual fund.
A redemption charge an investor or policyholder pays for withdrawing money from an investment or policy. This is most common in mutual funds and annuities and is designed to discourage withdrawals. Back-end loads generally decline for each year the individual remains in the fund or contract. Also see front-end load and low load.
Fee that some mutual funds charge when you sell shares in the fund. The mutual fund prospectus must disclose whether the fund has a back-end load and, if so, how much it is and whether it declines the longer you remain in the fund. Back-end loads are also called contingent deferred sales charges, exit fees, or redemption charges. See also CDSC, front-end load, level load, and no-load fund.