The main benefit of no load funds is the fact that the full 100% of your investment gets invested instead of 97% or 98% This way the amount of money that is invested and working for you increases.
It is a loss on the other hand for the brokerage firms and investment advisors because they do not earn anything out of your investments.
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.
The two primary types of mutual funds are "no-load" and "load" funds
Shares in load funds are usually sold through separate distributorships
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.
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.
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
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.
The child benefit theory allows for state funds to be provided to students who are in private schools. This should only be done upon justification that the funds will benefit the students.
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.
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.
No it does not benefit them. It is for putting client funds in until they can be used or dispersed.
The school will benefit by getting more school funds and Bella will benefit by learning and of course meeting Edward.