What do hidden load funds typically charge for?

Hidden load funds typically charge for marketing and advertising expenses. These funds may not disclose their sales charges in an upfront manner, meaning investors can be unaware of the additional costs associated with them. Instead of a traditional sales charge or load, the expenses related to promoting the fund often get embedded within the fund's overall expense ratio or may come from the fund's returns. This can be misleading because it can affect the investor's total return without clear visibility into the specific costs being incurred.

While annual management fees, trading commissions, and investment research fees are all relevant costs associated with mutual funds, the nature of hidden load funds primarily relates to those expenses that promote the fund and attract investors, which is why marketing and advertising expenses is the correct focal point here. Understanding the cost structure of these funds is crucial for investors, as it can influence investment decisions and overall financial performance.