No Load Mutual Funds
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.
Not all mutual funds are created equally. Some have fees, and some don't. Load mutual funds charge you a fee because they feel they can earn you a higher than average return and that you should pay for it.
If you invest in a load fund, you will be charged an amount of what you earn. For instance, if they charge 3 percent and the fund returns 9 percent, you will get a total of 6 percent in return.
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.
You don't necessarily need to go with the load fund. They can't guarantee a higher return, just based on chance. You might be able to get a higher return with a load fund, but if they charge you a fee, it might add up to the same amount or more than the higher return anyway.
If you invest in no load funds, you get the entire return, which can mean more money. If you really think a load fund can earn you more, than go for it. Otherwise, it might just not be worth 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. - 23229
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.
Not all mutual funds are created equally. Some have fees, and some don't. Load mutual funds charge you a fee because they feel they can earn you a higher than average return and that you should pay for it.
If you invest in a load fund, you will be charged an amount of what you earn. For instance, if they charge 3 percent and the fund returns 9 percent, you will get a total of 6 percent in return.
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.
You don't necessarily need to go with the load fund. They can't guarantee a higher return, just based on chance. You might be able to get a higher return with a load fund, but if they charge you a fee, it might add up to the same amount or more than the higher return anyway.
If you invest in no load funds, you get the entire return, which can mean more money. If you really think a load fund can earn you more, than go for it. Otherwise, it might just not be worth 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. - 23229
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Find out more about no load mutual funds and if you should invest in them. Also, find out how mutual funds work to make you more money.
posted by X - Men @ 5:32 AM
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