What is the difference between a load fund and a no load fund?
Likewise, people ask, what is the difference between a load and no load mutual fund?
A mutual fund load is a fee charged for the purchase or sale of a mutual fund. Funds that charge loads are generally referred to as "load funds" and funds that do not charge loads are called "no-load funds."
Subsequently, question is, what share class is a no load fund? Mutual funds that do not charge loads are known as no-load mutual funds. Some share classes of funds may easily be confused with no-load mutual funds. Typically, class B shares and class C shares do not charge a front-end load.
Beside above, what is a load or no load fund?
A no-load fund is a mutual fund in which shares are sold without a commission or sales charge. This absence of fees occurs because the shares are distributed directly by the investment company, instead of going through a secondary party.
Are no load mutual funds good?
Despite the fees and, by extension, the inferior returns, load funds can still be a good investment for inexperienced or very busy investors. Ultimately, it will be for you to decide whether the services you receive are valuable enough to justify giving up the higher returns of a no-load mutual fund.