A brokerage house receives fees from investors who purchase shares in a load mutual fund. These fees, also known as sales charges, compensate the brokerage for their services in facilitating the transaction. They typically range from 3-8% of the total investment amount and can be either front-end or back-end loaded. Front-end loads are paid upfront, while back-end loads are paid when the shares are sold. Understanding these fees is crucial for investors to make informed decisions when choosing mutual funds. So, it's important to carefully consider the fee structure before investing in a load mutual fund.
