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 ?
Q I'm very interested in no-load mutual funds and how they work.
The managed accounts have attracted their share of critics, who question everything from the size of the fees - which can be well over double the charges levied by many no-load mutual funds - to the qualifications of the brokers to serve as financial advisers.
RS has value and growth investment groups that manage no-load mutual funds and separate accounts for individual and institutional clients.
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.
Through FundVest, investors can buy, sell or exchange an array of load and no-load mutual funds without incurring regular transaction fees.
com and about its proprietary no-load mutual funds and annuities at www.
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.
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.
0 billion under management, the groups consist of 13 no-load mutual funds that invest in a variety of investment options, from emerging markets to money markets.
RS have value and growth investment groups that manage no-load mutual funds and separate accounts for individual and institutional clients.
75 billion under management, the groups consist of 12 no-load mutual funds that invest in a variety of investment options, from emerging markets to money markets.