No-load mutual fund

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Related to No-load mutual fund: 12B-1 fees

No-load mutual fund

An open-end investment company whose shares are sold without a sales charge. There can be other distribution charges, however, such as Article 12B-1 fees. A true no-load fund has neither a sales charge nor a distribution fee.

No-Load Mutual Fund

A mutual fund that does not charge shareholders a sales charge or commission. Some no-load funds charge a distribution fee, which is a small percentage of the amount one invests used to cover the fund's costs. Other no-load funds, however, do not have distribution fees. Some investors prefer no-load funds because the total amount of their investment is used to purchase shares with little or no deduction. Studies have shown that no-load funds perform neither better nor worse than load funds. See also: 12B-1 fee.

No-load mutual fund.

You buy a no-load mutual fund directly from the investment company that sponsors the fund. You pay no sales charge, or load, on the fund when you buy or sell shares.

No-load funds may charge a redemption fee if you sell before a certain time has elapsed in order to limit short-term turnover.

Some fund companies charge an annual fee, called a 12b-1 fee, to offset their marketing costs. Your share of this fee is a percentage of the value of your holdings in the fund.

You may also be able to buy no-load funds through a mutual fund network, sometimes known as a mutual fund supermarket, typically sponsored by a discount brokerage firm. If you have an account with the firm, you can choose among no-load funds sponsored by a number of different investment companies.

Load funds and no-load funds making similar investments tend to produce almost equivalent total returns over the long term -- say ten years or more. But it can take an investor nearly that long to offset the higher cost of buying load funds.

References in periodicals archive ?
A No-load mutual funds are available for purchase without an upfront sales charge, but there is usually a charge when you liquidate or cash in your shares.
The firm is the investment adviser to the PBHG Funds, a family of 14 no-load mutual funds which will not be affected by the restructuring.
I won't attempt to argue that diversification doesn't matter in limiting downside risk, and diversification is easier to achieve with no-load mutual funds than no-load stocks.
In response to this trend, Donoghue has designed a seminar that will inform and educate experienced and novice investors alike about no-load mutual funds.
For that reason, she added, ``It's going to have to be a heck of a strategy to do better than you're going to do by sticking your money into a couple of no-load mutual funds.
Nasdaq-NNM: TROW) one of the nation's leading providers of no-load mutual funds, has announced the appointment of William T.
com and about its proprietary no-load mutual funds and annuities at www.
announced Wednesday an ambitious offering of no-load mutual funds and a discount stock brokerage service to be offered by mail, telephone and soon computer.
NEW YORK, March 8 /PRNewswire/ -- Warburg Pincus, whose family of no-load mutual funds has been widely praised by fund commentators, has joined Charles Schwab's Mutual Fund OneSource service, the only new fund company to be added at this time.
announced today that its four-year-old ADAM service, which offers individual investors and institutions a disciplined approach to investing in no-load mutual funds, has topped the $1 billion mark in assets under management.
It manages growth, core, and value stocks in separate and managed accounts and no-load mutual funds.
He also suggests Irrevocable Trusts or No-Load Mutual Funds as good options for future retirement and, More says, getting help from a financial planner never hurts.