| There are many different mutual funds that | | | | This is contrary to that of the other loads. In |
| people can invest with. These different funds will | | | | these loads only part of your money is invested |
| for the most part have certain loads that will be | | | | into the mutual funds. The remainder of the |
| given. These loads will also include no load mutual | | | | money will be used as the sales commission of |
| funds. The interesting aspect of a no load mutual | | | | the mutual funds investment group. As an |
| fund is the lack of large fees that you as the | | | | example of the difference between these two |
| investor needs to pay to the company. There are | | | | funds is illustrated below. |
| lots of examples of no load mutual funds today | | | | In a load mutual fund you could invest for |
| but the most reliable one is still the Index Mutual | | | | instance $10,000. The mutual funds company that |
| Funds. | | | | you are using will however invest only $9,500. |
| This is the first mutual funds group which utilized | | | | The remaining $500 is used as a 5% sales |
| the no load mutual funds tag for the benefit of | | | | commission charge. At the end period of your |
| their customers. Where the other mutual funds | | | | investing if a 10% funds return was made the |
| have various charges that you will have to pay as | | | | load fund would only have produced $10,450 for |
| a result of the load, the no load mutual funds in | | | | you. Now the no load mutual fund works |
| stark contrast are lacking in these customer fees. | | | | differently. |
| Besides these differences the load funds do not | | | | In the no load mutual funds you invest about the |
| work as well as the no load mutual funds in the | | | | same amount. That is you invest $10,000. The |
| long run. | | | | investment company will invest the entire $10,000 |
| The no load mutual funds are distributed directly | | | | into the mutual fund that you have chosen. At |
| to the customers by the investment company. | | | | the end investment period the no load mutual |
| As there is no middle group to work the mutual | | | | funds which could have a 10% funds return will |
| funds you as the investor will have no need to | | | | yield to you about $11,000. As you see the no |
| worry about sales commissions. The premise | | | | load mutual funds is more beneficial to the |
| behind a no load mutual fund is that all of the | | | | customer as there is no secondary party to take |
| money that you invest in the fund will work | | | | part of your money away. |
| entirely for you. | | | | |