What is the difference between a no load and load fund?
Moreover, 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."
Secondly, what is a load fund? A load fund is a mutual fund that comes with a sales charge or commission. The fund investor pays the load, which goes to compensate a sales intermediary, such as a broker, financial planner or investment advisor, for his time and expertise in selecting an appropriate fund for the investor.
Furthermore, what is a 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.
How do you tell if a mutual fund is no load?
Every mutual fund has its own set of webpages that cover information about the fund including investment objectives, performance history and the fund's fee structure. If no sales charge is listed -- front-end or deferred -- a fund is no-load.