Multiple choice

The load charged to an investor in a mutual fund is

  1. Cost of the paper on which the unit certificates are printed

  2. The fee the agent charges to the investor

  3. The expenses incurred for marketing and selling a mutual fund scheme

  4. Entry fee
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Load is the fee charged to cover distribution and marketing expenses of a mutual fund scheme. It compensates agents and intermediaries for selling the fund to investors, not the cost of printing certificates or other administrative costs.

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