A recurring, annual sales fee (load) that is charged on holdings of level load funds (class C shares of a mutual fund). A level load is deducted from an investor’s assets (in the fund) to cover intermediaries’ charges (distribution and marketing costs) over an investor’s respective holding term.

The charge is usually set as a fixed percentage. For class C shares, there is no up-front sales charge, but could be 1% fee if shares are redeemed before a holding period of 12 months is completed; for longer periods (e.g., 10 years) it  may drop down to 0.25%.

In general, the level-load rate is lower than the sales charge for front-end loads or back-end loads. However, the annual management fee (associated with level load funds), that depends on holdings, is typically higher.