No Load Mutual Funds Provide More Value For Your Money

2007-03-08 10:33:40

( Financial )



If a sales person tries to use all means to convince you to purchase loaded funds, you should also use all means to look for another investment company. When you purchase a loaded mutual fund, a certain value of what you pay will go to the sales person as commission. One way for these brokers to convince you is to inform you that you are purchasing exclusive mutual funds, and therefore certain fees need to be paid, or that you will recover this portion after a certain time frame.

For an amateur investor, it may be hard to tell the difference between loaded mutual funds and no load mutual funds. The best way for you to buy the best no load mutual funds is to make the purchase directly with an investment company instead of an investment broker. One other way to ensure that you are buying mutual funds with no loads is to watch out for any terminology in the mutual fund prospectus that deals with actual purchase fees, front-end loads or charges and deferred load or charges. The only fees that you may have to pay as a result of the purchase of mutual funds are fund expense fees, which are indicated on the prospectus of your mutual funds, and whose costs are in proportion to the value of your funds.

No load mutual funds are beneficial to individuals who intend to make investments for only several years. These funds provide an investor with higher returns because the entire amount of money is invested instead of having a portion subtracted as load charges. Investment companies selling no load mutual funds tend to provide an investor with a choice of a number of mutual funds in one location, so there is no need to open a mutual fund account for each mutual fund group that you purchase.

When looking for no load funds investment companies can be easily found on the Internet. Make sure that before choosing an investment company to work with, that you compare the services and reputation of several different investment companies before making a commitment.


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