Dictionary of Business Terms: sales charge
sales charge
fee paid on purchasing an investment or product. For example, the sales charge for some mutual funds starts at 81/2% of the capital invested and decreases as the size of the investment increases.
Dictionary of Finance and Investment Terms: sales charge
sales charge
fee paid to a brokerage house by a buyer of shares in a load mutual fund or a limited partnership. Normally, the sales charge for a mutual fund starts at 4.5% to 5% of the capital invested and decreases as the size of the investment increases. The sales charge for a limited partnership can be even higher-as much as 10%. In return for the sales charge, investors are entitled to investment advice from the broker on which fund or partnership is best for them. Afund that carries no sales charge is called a no-load fund.
