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What are the two primary types of mutual funds?
The two primary types of mutual funds are "no-load" and "load" funds
How do no load mutual funds work?
No load mutual funds are mutual funds that are sold directly by the investment company instead of by an investment broker. They work exactly the same as regular mutual funds.
Where can one find articles to learn about the best no load mutual funds?
Articles to learn about the best no load mutual funds can be found from many different resources. Some online resources with these articles include Investopedia and Kiplinger.
You wish to invest in mutual funds and am currently doing research into the various terms related to mutual funds Can someone tell you what is a load and no-load fund?
A load fund is a mutual fund that charges the investor a percentage of the NAV on entry or exit. This charge is decided by the mutual fund provider. The amount is used by the provider for advertising and distribution purposes and is included in the purchase as a sales fee. Additionally, load funds may be differentiated into back-end and front-end funds depending on when the fee is charged. For a back-end fund, the fee is charged when the mutual fund is redeemed and the front load is charged on purchase of the fund. A no-load fund is simply a fund that does not charge any commission or sales charge. This is possible because shares of such funds are distributed directly by the investment company. In the long run, load as well as no-load funds offer similar returns. However, no-load funds do charge a fee if they are redeemed before their maturity.
What is a non load mutual fund?
A no-load mutual fund is one that does not charge a fee to investors. Many mutual funds have a "load" or initial fee, often around 5%, that investors must pay in order to buy in to the fund. No-load mutual funds lack this fee, and earn money for their managers in different ways. Most index funds are no-load funds.
What are no-load mutual funds?
No-load mutual funds do not require investors to pay fees or sales commission, and the price of a share in a no-load fund is identical to its net asset value
Where can you buy mutual funds?
You can buy it at a no load mutual fund company. An example of this kind of company is Vanguard. One can also seek advice from other people on where to buy mutual funds.
What is the fee to sell a mutual fund?
In India, it is usually 1 or 2% of the total value if you sell your funds within 1 year from the date of purchase. It is called "Exit Load" If you sell your funds after holding on to them after alteast a year, then there is no fee.
Where can I find more information about no load mutual funds?
Forbes is a great source for all financial info, they even have a mutual find newsletter.
What is the definition of a no load mutual fund?
A no load mutual fund is a mutual fund that does not charge a commission or sales charge. This means that you don't have to pay a fee to invest or withdraw your money, and all of your money will go to work in the mutual fund. A no load mutual fund means that there is no or very low fee charge for the fund. These are typically lower than loaded mutual funds.
What are no load funds?
Generally mutual funds charge an entry load of 1-2% of the investment amount everytime an investor makes an investment in their fund. Similarly they charge an exit load of 1-2% when the investor redeems his investment within a certain timeframe. No load funds are those that do not charge either an entry or an exit load.
Who can buy mutual funds at exempt saled charge?
Mutual funds can be purchased without a sales charge typically by certain categories of investors, such as institutional investors, financial advisors, or through specific platforms that offer no-load funds. Additionally, some funds offer no-load shares to employees or clients of the fund company and their families. It's essential for investors to check the specific terms and conditions of the mutual fund they are interested in, as exemptions can vary.
