Savvy investors know that by reducing fees and expenses on their investments that can retain more of their capital and realize greater profits. By investing with no load mutual funds you can reduce your costs for investing and increase your chances of building lasting wealth.
No load mutual funds are similar to other mutual funds in that you will use the same strategies to invest in them. With these types of funds, however, you will get to invest without paying a sales charge. You do have to keep in mind that there are other fees and charges to look out for with these funds.
You may want to consider using a professional financial adviser to assist you with investing in no load mutual funds. Online broker ETrade offers the industry’s most comprehensive research and screening tools, as well as access to the industry’s top financial professionals.
Investing With No Load Mutual Funds: What Are “Loads”?
A “load” is a fee charges to an investor when fund shares are either bought or sold. When a load is charged for the purchasing of shares it is referred to as a front-end load, and when charged for the sale of fund shares it is referred to as a back-end load.
Your broker receives the load as payment for either buying or selling the fund. When a mutual fund does not charge investors a load it is referred to as a no load mutual fund. It is possible to earn more by investing with no load mutual funds as you do not pay a sales charge with no load funds.
It may be easy to confuse some share classes of funds with no load funds, as class B shares as well as class C shares do not charge a front-end load, but rather charge a fee when you sell your shares, or a back-end load. A true no load mutual fund carries neither a front nor back-end load.
The majority of no load mutual funds are bought and sold through a financial representatives such as brokers and financial advisers. Online broker ETrade offers over 1,000 no load mutual funds to compliment any investment objective.
What Is The Cost Of Investing With No Load Mutual Funds?
When you are investing with no load mutual funds you do not pay a sales charge – loads – although they do have costs associated with investing. Load or no load, all share classes of funds carry fees which are paid to the fund’s investment advisers out of the fund’s assets.
These fees are opposed to paying the the broker or adviser who sells the fund. These fees are seen as a reduction in net returns as opposed to an expense on their brokerage or bank statement. Depending on the share class of the fund, the fund company, fund assets, market capitalization, and investment style these fees may vary from less than 1% to over 2%.
Whether you are a do-it-yourself investor, or you would prefer to work with a financial adviser, online broker ETrade makes it easy and affordable to invest in no load mutual funds. You can access the research and information you need on your own online, or speak directly with an investment specialist to find the mutual fund that is right for you.
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