Are No Load Mutual Funds Better Than Load Mutual Funds?
The sale of mutual funds without a sales charge or commission is known as no load mutual funds. This is an attractive idea for a number of people and the sales are conducted by the investment company without any involvement from a third party. It is exactly the opposite of the load fund, that includes a charge on the day of sale or once it is completed. The money invested in a no-load fund is very useful since it is absolutely free to enter such a fund. For instance, purchasing a no-load fund valued at $20,000 the total amount invested in it is yours and it works for you as well. But in a load fund, funding the same $20,000 has say an average 5% sales charge so the amount invested in the fund is only $19000, which is a basic loss. A return for both the funds would also vary, with the load fund having lower returns compared to the no-load fund. People still invest in load funds thinking that the commission paid will be obtained since the returns would be higher compared to the no-load m
