What is FRONT END LOAD?

1. In Banking, this is beginning cost of a loan, like a mortgage, when interest charges and fees are higher. As time progresses, this cost or interest charge decreases, as seen in monthly installments. 2. In Investing, this is the initiation cost of fees and charges an investor pays for vehicles like annuities, life insurance policies, and mutual fund shares. Also refer to back end load.

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