Business, Legal & Accounting Glossary
A no-load fund is a mutual fund that is offered by an investment company for which no sales charge is levied. A no-load fund is called a no-load fund because in finance, the word load is synonymous with the word commission. Experts will generally recommend a no-load fund over a load fund since all money invested in a no-load fund is working for the investor, no-load funds are more likely to perform better than load funds. A fund called a no-load fund should be examined to ascertain that it truly is a no-load fund. Some firms, for instance, charge a back-end load, meaning that a fee is charged for selling the fund. When comparing the past performance of a no-load fund versus that of a load fund, investors should be sure to factor in the initial loss of the load.
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This glossary post was last updated: 7th February, 2020