Bob Brinker's Marketimer

  Monday November 20, 2017

Next Marketimer © Mailing Date: November 6th


© 1997-2017
Privacy Policy

Hosted by:
@ ADPAD INC.




BENEFITS OF LOAD AND NO-LOAD FUNDS
Learn even more about this topic with the Encyclopedia of Personal Finance™

Load funds are usually sold through brokers or other commissioned advisors. These advisors must evaluate their customers' needs and make suitable recommendations. They do not charge a separate fee for advice they give. They are compensated by commissions from the mutual fund companies they represent. These advisors also provide on-going advice and recommendations relating to their customers' investments. Very often, they prevent their customers from panicking when things look bad. They also advise their customers of the optimum mix of investments that would best meet their short-, intermediate-, and long-term goals.

A broker or advisor can help you to clarify your objectives. He or she can help you figure out your risk tolerance. An advisor can help you find funds with good performance histories. Since advisors have more access to research than does the average investor, some investors find their services worth the price. In addition, load funds make up a large part of the mutual fund family, and those who buy them can find some very good investment opportunities.

The most obvious benefit of no-load funds is that they leave you with more to invest. Investors who understand what they want in a fund and who are willing to manage their investments on their own frequently choose no-load funds. These investors must do their own research and often subscribe to investment advisory services and pay separate fees for advice.

However, there is no evidence that no-load funds perform better or worse than load funds. It boils down to how you get your advice: from a commissioned advisor, a fee-based advisory service, or on your own.

In today's competitive arena, most fund families now offer an advisor's class of shares with either no load or a low load, for investors who would rather pay a fee than a commission for advice.

Now, some final words.




LEARN EVEN MORE WITH THE ENCYCLOPEDIA OF PERSONAL FINANCE. CLICK HERE!

Powered by


Copyright ©1999-2017, Precision Information, LLC. All Rights Reserved