Are you interested in investing in mutual funds but can't figure out what a load or no load is? When a mutual fund charges fees such as a commission or set up fee, it is called a load mutual fund. No load funds do not charge any fees.
Just by looking at the definitions, you probably assumed that a no load fund is better. While I'm not telling you otherwise, you really need to understand the situation at hand to really get a grasp of it first.
Mutual funds are an excellent way to reduce risk while decreasing the amount of time you need to put into the investment. Someone else is doing all the work for you but you still get excellent diversification. You can just sit back and make more money while someone else does all the choosing.
As with any kind of investment, you want to get the highest return possible. In order to do this, you need to maximize your direct return and minimize your expenses. Choosing no load funds will eliminate virtually all your expenses.
Load funds claim they can get you an above average return. They can't guarantee that. The stock market is unpredictable and you could likely get the same return with a load fund as you can a no load fund.
Even if they are able to get you a higher return on a load fund, after expenses and commission fees, you are very likely to be at the same return or less than the no load fund with out any fees.
Should you choose a no load or load fund? You would probably do better with a no load fund. By not paying any fees, you can make a lot more. If you want to increase the chance of making a higher return with a no load fund, choose a higher risk and less conservative fund. - 23210
Just by looking at the definitions, you probably assumed that a no load fund is better. While I'm not telling you otherwise, you really need to understand the situation at hand to really get a grasp of it first.
Mutual funds are an excellent way to reduce risk while decreasing the amount of time you need to put into the investment. Someone else is doing all the work for you but you still get excellent diversification. You can just sit back and make more money while someone else does all the choosing.
As with any kind of investment, you want to get the highest return possible. In order to do this, you need to maximize your direct return and minimize your expenses. Choosing no load funds will eliminate virtually all your expenses.
Load funds claim they can get you an above average return. They can't guarantee that. The stock market is unpredictable and you could likely get the same return with a load fund as you can a no load fund.
Even if they are able to get you a higher return on a load fund, after expenses and commission fees, you are very likely to be at the same return or less than the no load fund with out any fees.
Should you choose a no load or load fund? You would probably do better with a no load fund. By not paying any fees, you can make a lot more. If you want to increase the chance of making a higher return with a no load fund, choose a higher risk and less conservative fund. - 23210
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Want to learn more about investing in no load mutual funds? Learn how to choose mutual funds with no load.
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