Why Use No-Load Funds?
Many noted economists, financial writers and investment counselors have stated that no-load mutual funds are the best invest ment vehicle for all but the largest investors. This viewpoint was clearly summarized in a Newsweek article by Paul Samuelson, the noted Nobel laureate in Economics, who came to the following conclusions: “You must diversify widely.” “You must avoid the deadweight loss from commissions involved in turnover and trading.” “Unless you have $20 million, you must utilize no-load instruments, either commingled bank trust funds or mutual funds.” While it is true that wide diversification and low transaction costs are key advantages of most no-load mutual funds, they also offer other important features such as flexibility, liquidity, convenience and safety. The wide degree of flexibility available today in mutual funds permits most investors the opportunity to construct a well-diversified portfolio that is suitable to his or her needs. The range of opportunities today is
