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4 votes
Which of the following is not true about load funds?

a) average load is between 3 and 5
b) funds do not charge
c) maximum load is 8.5 percent.
d) a load fund charges commissions.

User Borzh
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1 Answer

4 votes

Final answer:

The correct answer is option b) funds do not charge.

Step-by-step explanation:

The question pertains to load funds, which are a type of mutual fund that charges a fee for the purchase, the maintenance, or the sale of investments. The options a), c), and d) are generally true about load funds, because they typically charge a sales commission that is indeed between 3 and 5 percent on average, and by regulation, the maximum load cannot exceed 8.5 percent. However, option b) is not true because load funds, by definition, do charge a fee.

Therefore, the correct answer would be that option b) 'funds do not charge' is not true about load funds.

User Bouke Versteegh
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7.3k points