📖 The story
Sarah invests $30,000 in an equity fund with a 4 % front-end load. She wants to know how much of it actually works for her.
ℹ Load applied to the net investment amount.
Topics › Mutual Funds & Securities › What is left after the front-end load?
Easy
Mutual Funds & Securities
What is left after the front-end load?
Change any number and press "Calculate" – or use "Type in" on the right to watch it entered step by step.
What you learn
The front-end load erodes the working capital right from the start – only the net amount earns a return. Anyone comparing products should always look at the load.
In short: The front-end load erodes the working capital right from the start – only the net amount earns a return.
Formula
Net = Gross / (1 + load/100)
With the example numbers
Netto = 30,000.00 $ / (1 + 4.00/100) = 28,846.15 $
How to read the formula
Net = Gross/(1+load) – important: the load is applied to the net investment amount, not to the payment. That is why you divide (instead of simply subtracting). Takeaway: of every payment, only the net portion works for you from the start.
More values
| Aufschlag eur | 1,153.85 |
Embed on your own website
iframe code to copy›
Click the code to copy it to your clipboard.