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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.
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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 is the benefit of no load funds?
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.
What are the two primary types of mutual funds?
The two primary types of mutual funds are "no-load" and "load" funds
How do load funds operate?
Shares in load funds are usually sold through separate distributorships
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 does the tires speed index mean?
It indicates the maximum speed at which the tire can carry a load corresponding to it's load index.
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.
Can tire load index go up?
No.
What is a prepaid load?
When purchasing mutual funds, a prepaid load is one in which you pay the commission upfront, opposed to paying a rear load where you pay any commissions after the sale of the mutual fund. In cell phones, a prepaid load would be buying usable minutes using those minutes and then buying more minutes. You are paying upfront instead of receiving a monthly billing.
Good investment sites to help decide?
If you are unsure of what to invest in, you can try using index funds or no-load mutual funds. Suze Orman's advice is similar, and can be found her website www.suzeorman.com. There may be ways to make more money, more quickly, but there are fewer safe ways that will protect your investments.
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.
