No Load Mutual Funds Explained
If you don't know much about stocks, bonds, investing, or anything else like that, you are not alone, and it's okay. You don't have to be a stock broker to invest your money in stocks. Invest in mutual funds and you can get your money invested by someone who knows what they're doing even if you know nothing about investing.
Mutual funds work by having many people invest their money together. They pool their money together and a fund investor invests all the money into different investments that they choose. You don't have to worry about diversifying your investment because the fund manager does it all.
You can choose basically two different kinds of mutual funds, load and no load funds. Load funds will charge you a fee. You can earn a higher return on your money and that is why you are charged a fee.
Load funds will normally charge a fee based on the rate of return. If the fund were able to earn a return of 12 percent and they charged 2 percent, you get end up with a total return of 10 percent.
With no load mutual funds, you are not charged a fee. If the investment returns 10 percent, that's what you get. They are more appealing to many because you get all that you earn, minus no fees.
Are load mutual funds superior to no load funds because they charge a fee? Nobody can guarantee a higher return. The stock market is all up to chance and to say this is misleading. Honestly, even if they are able to earn a higher than average return, the fee will probably just cancel it out anyway.
By investing in no load mutual funds, you can help squeeze out the highest return possible on your money. If you feel a mutual fund charges a minimal fee and your convinced they can earn you a higher return that will give you a higher return overall, even after the fee, than go for it.
Don't let the load fund sell you into paying high fees just because they promise a high return and don't go for a load fund just to save a little on fees. Look for a concrete fund with something to offer. - 23196
Mutual funds work by having many people invest their money together. They pool their money together and a fund investor invests all the money into different investments that they choose. You don't have to worry about diversifying your investment because the fund manager does it all.
You can choose basically two different kinds of mutual funds, load and no load funds. Load funds will charge you a fee. You can earn a higher return on your money and that is why you are charged a fee.
Load funds will normally charge a fee based on the rate of return. If the fund were able to earn a return of 12 percent and they charged 2 percent, you get end up with a total return of 10 percent.
With no load mutual funds, you are not charged a fee. If the investment returns 10 percent, that's what you get. They are more appealing to many because you get all that you earn, minus no fees.
Are load mutual funds superior to no load funds because they charge a fee? Nobody can guarantee a higher return. The stock market is all up to chance and to say this is misleading. Honestly, even if they are able to earn a higher than average return, the fee will probably just cancel it out anyway.
By investing in no load mutual funds, you can help squeeze out the highest return possible on your money. If you feel a mutual fund charges a minimal fee and your convinced they can earn you a higher return that will give you a higher return overall, even after the fee, than go for it.
Don't let the load fund sell you into paying high fees just because they promise a high return and don't go for a load fund just to save a little on fees. Look for a concrete fund with something to offer. - 23196
About the Author:
When looking for mutual funds, choose the best fund and don't worry about investing in no load mutual funds vs load mutual funds.
posted by X - Men @ 12:51 AM
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