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How do load funds operate?

Updated: 8/19/2019
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13y ago

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Shares in load funds are usually sold through separate distributorships

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Q: How do load funds operate?
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Related questions

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.


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


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.


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.


Can I purchase no load mutual funds online?

Yes, You can purchase no load mutual funds online. All of the major companies of which you would have heard (Vanguard, T Rowe Price, Fidelity, etc.) and offer some of the better no load mutual funds all have websites and allow you to purchase online.


When voltage regulation will be zero it operate it?

A transformer will operate with a voltage regulation of zero when it is not supplying a load.


When transformer voltage regulation will be zero it operate at?

A transformer will operate with a voltage regulation of zero when it is not supplying a load.


Where can you find a list of no-load funds with low initial investments?

Morningstar


What is the benefit of purchasing no load index funds?

The benefits of purchasing no load index funds is to avoid incurring any transaction costs compare to those investors who are buying ETFs who have to pay the brokerage commission.


What circuit breakers can you use in your load center and why?

Usually the load center and the breaker have to be of the same manufacturer to operate correctly.