No-load mutual fund

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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 ?
The no-load funds bring advisors upfront onboarding commissions of up to 3.5% and a "consistent" trail of up to 0.25%.
The no-load funds do, though, bring advisors upfront onboarding commissions of up to 3.5% and a "consistent" trail of up to 0.25%.
Both the RIA and IBD channels have also experienced an increase use of institutionally priced share classes and no-load funds, as the overall price of products becomes more of an issue for fee based advisors.
Funds that do not have any such fees are called no-load funds.
Retirees may have been in target-based no-load funds or a qualified professionally managed plan at a 60/40 equity/fixed mix, and then are placed into an 80% equity portfolio, LaBrecque said.
"As ERISA accounts mature, terms such as no-load funds, participant-level revenue sharing and fee levelization are starting to enter the nomenclature," says Welsh.
He likes this trio because they are no-load funds with very low expense ratios, solid histories, and solid management investment styles.
In fact, studies have shown that there are no differences in performance between load funds and no-load funds or between funds with a subscription fee and those without.
This load is similar to no-load funds that charge 12b-1 fees.
0% 0% 4.5% CDSC penalty 3 years 7 years N/A for withdrawal M&E costs 1.65% 1.4% N/A Fund costs .85 .85 1.3% Advisor Fee N/A N/A N/A Total Average 2.5% 2.25% 1.3% (front- Fees (varies end load is with product *) extra) Category of fees B-share C-share No-load funds for comparison funds funds w/ a fee Front-end load?
The fact is that every mutual fund and exchange-traded fund charges this fee, including even no-load funds. This fee is also known as the expense ratio.