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What are no-load, front-end load, back-end load, and 12b-1 fees?

April 26, 2017back-end fees front-end load no-load

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What are no-load, front-end load, back-end load, and 12b-1 fees?

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No-Load – Funds that do not charge any front-end or back-end loads. Such funds eliminate sales commissions charged by load funds by selling their shares through direct distribution. Front-End Load – You pay a sales commission up front when you purchase fund shares. If a front-end load is charged in a participant directed plan, you will see an immediate reduction in the amounts your deferrals. Back-End Load – You pay a sales commission when fund shares are redeemed. 12b-1- You pay a charge to cover marketing and distribution expenses. The PERSI Choice Plan does not charge any of these types of fees.