Help- am I reading the fees right?

[Loren Ver]

Hello Investors I have a question.

I have always thought the "load" or "operating expenses" listed in a funds prospectus was the percent the fund takes out every year as a cost.  Well, I am getting DH's 401k set up and the loads on most of the funds are HUGE.  Many of them in the high 5% range.  Am I reading this correctly or have I just misunderstood how to read the prospectus? 

I just need a sanity check to make sure I am not mistaken.  If I am not, this is NUTS!  For a 401k that has almost no match (up to 1% of 5% of his income-ugh) and then to have most of the choices be a 5.75% load gets my hackles up. 

Grrr?
Loren

Example I copied out
   
Shareholder Fees (fees paid directly from your investment)   Class A
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)   5.75%            

[maizefolk]

Load and operating expenses are a little different.

Expense ratio (or operating expenses) is what you pay each year to hold the fund.

Front load is what you pay when you first buy the fund (for reputable companies this should be zero).

Back load is what you pay when you sell the fund (for reputable companies this should also be zero).

So in the case of the one you posted, if you put $1000 into it, they'd take $57.50 and only give you $943.50 worth of shares.

[JoJo]

Are you sure the one he is offered is Share A or maybe another Share?  I think sales loads are rare for 401(k).  Sales loads are common for funds purchased from a commissioned broker.  Usually it matches the amount the broker is paid for your purchase.