What Is a Mutual Fund Sales Load?How do Sales Loads Work and Should I Pay Them?
Recently, a friend of mine sent me some questions about working with a new stock broker. He and his girlfriend had moved across the country and gone to the branch office of one of the biggest investment firms in the United States. He was presented with a suggested portfolio but the new broker mentioned that all of his mutual fund purchases would have a “five percent sales load” on them. My friend contacted me and wanted to know what a mutual fund sales load was and whether or not he should be concerned. In fact, just like most new investors, he wasn’t even sure if a 5% sales load was good or bad. To help you better understand mutual fund sales loads, I am going to provide a brief overview of wha
