What’s The Difference Between Load And No Load Funds?

Accountancy Resources

What’s The Difference Between Load And No Load Funds?



Mutual Funds Author: Admin

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Investing is a wonderful way to grow your money, but the terminology with it can scare some people. Just by taking 5 minutes, you can learn some useful information on mutual funds. It can go a long way in your retirement investing decisions. Today I’m going to look into load and no-load mutual funds.

What is a mutual fund?

Wikipedia describes a mutual fund as:

mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.

What is a load mutual fund?

It’s basically a mutual fund with an extra sales cost.

If you have a front-load mutual fund, you pay to buy into the fund. If you have a backload, you pay when you sell your fund. A no-load fund may have administrative costs, but it is not supposed to have a sales cost.


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