A load fund is an investment vehicle structured around mutual fund shares and associated sales commissions. Load funds are purchased by individuals who must pay a commission when the fund is purchased (front-load) or when the fund is sold (back-load). The sale of the load fund is facilitated by a broker or financial adviser, who is compensated for their services by the individual or company who purchased the fund.

The types of load funds available for purchase vary widely, ranging from funds that are actively managed to those passively managed. Actively managed funds utilize an investment manager to evaluate the fund's holdings and make decisions on how to invest the funds. This typically requires a higher sales commission as the investment manager is paid a fee for their services. Passively managed funds, on the other hand, are funds that are structured to replicate a certain index, such as the S&P 500. These funds often have no sales commission as they do not require an active manager to evaluate the fund's holdings.

When an individual invests in a load fund, they are also investing in a portfolio of investments, such as stocks, bonds, or commodities. It is important to note that when selecting a load fund, one should evaluate the fund’s investment objectives to determine if the fund is well suited to achieving their long-term financial goals.

Overall, a load fund can provide a great way to diversify investments and access a broader range of investment vehicles than may be available in a taxable investment account. If an investor plans to purchase a load fund, they should carefully review the fees associated with the fund and make sure they understand the associated costs. By doing research and carefully selecting a load fund, an investor can often increase their potential for financial success.