This sales charge is deducted from the amount you invest. If you cannot get the salesperson to negotiate the fee, shop around. A back-end load is the fee charged to investors when they redeem, or sell back, their units to the fund. The redemption fee schedule given below is typical of many funds. There is no deduction when you purchase.
Some funds base the redemption fee on the original amount invested.
Other funds base the charge on the market value of your units at the time of redemption. Obviously, in this case, the first way is a better deal. If, on the other hand, your investment has declined in value, the reverse is true. Choosing the back-end load allows all of your investment dollars to go to work for you immediately. Before purchasing a load fund with the back-end load option, you should also be aware that although you don't pay a fee directly to your sales representative at the time of purchase, the mutual fund company does.