Back-end load

Back-end loads and deferred sales charges are fees paid when mutual fund units are sold. †Back-end load fees on the sale of mutual fund units do not at that point go to the advisors or brokers who sold the actual mutual fund.† When investors purchase back-end loaded funds, the advisors and brokers are paid at that point by the mutual fund company.† In essence the mutual fund companies are prepaying the advisor for the investor holding the actual fund for a certain number of years.† However, if investors sell the mutual fund units prior to a specified holding period, normally 6-7 years, the investor will pay a back-end load or deferred sales charge.† Deferred sales charge fees typically start at 5 or 6 percent and are discounted for each year an investor owns units in the mutual fund.† The schedules and fees are described in detail in the mutual fund prospectus.† The back-end load typically goes to zero after holding the fund for a period of 6 or 7 years.†

Mutual fund values are not guaranteed and individuals can lose money on mutual fund investments.† Investors should read the mutual fund prospectus prior to making an investment decisions.† Mutual fund purchases should be made taking into consideration an individualís investment experience, investment objectives, time horizon and risk tolerance level.

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