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.
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.
I won't say that no-load stocks, as a group, will outperform no-load mutual funds over time.
investing in no-load mutual funds are greater than the costs of investing in individual stocks, especially no-load stocks.
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.
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.
USAA Investment Management Company is a direct marketer of no-load mutual funds totaling an estimated $29 billion in assets under management in a range of equity, fixed-income, and money market funds.
The acquisition includes the Fremont Funds, a diversified complex of 12 no-load mutual funds managed by independent subadvisors and investment professionals at FIA, as well as FIA assets in separate accounts and 401(k) plans.