What is a fund charge?
Sometimes called the ‘entry charge’, this is an upfront charge paid when you invest money in a fund and is deducted from your investment before you invest. This covers the costs of setting up your investment, such as administration and marketing costs.
How are fund expenses charged?
Annual Fund Operating Expenses Operating fees cover the administrative costs to manage, market, and sell the fund, and are charged as a percentage of the fund’s net average assets. They also cover administrative costs. After all, the brokerage has to cover their business expenses associated with running the fund.
How does front end load work?
A front-end load is a sales charge or commission that an investor pays “upfront”—that is, upon purchase of the asset. The percentage paid for the front-end load varies among investment companies but typically falls within a range of 3.75% to 5.75%.
What is a finance charge?
A finance charge is any cost you encounter in the process of obtaining credit, using it, and repaying the debt. 1 Finance charges usually come with any form of credit, whether a credit card, business loan, or mortgage. Any amount you pay beyond the amount you borrowed is a finance charge.
Which application fee is excluded from finance charge?
An application fee that is excluded from the finance charge is a charge to recover the costs associated with processing applications for credit. The fee may cover the costs of services such as credit reports, credit investigations, and appraisals. The creditor is free to impose the fee in only certain of its loan programs, such as mortgage loans.
What is an excludable finance charge?
Excludable charges. Sums must be actually paid to public officials to be excluded from the finance charge under § 1026.4 (e) (1) and (e) (3).
What is a fund?
1 A fund is a pool of money set aside for a specific purpose. 2 Those pools can are often invested and professionally managed. 3 Some common types of funds include pension funds, insurance funds, foundations, and endowments.
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