| Mutual funds pool money from investors, who are | | | | shareholders records and financial statements, |
| constantly saving into the fund and at the same | | | | marketing and advertisement fees. As an investor |
| time, others are withdrawing from the fund, | | | | who is only starting out on investment, it would |
| forcing the investment managers to keep large | | | | be wise if you could start up with funds that have |
| sums of money as liquid cash. This is one | | | | low investment requirements. |
| disadvantage of a mutual fund because, keeping | | | | A front load fund entails paying the commission |
| liquid cash is detrimental to the growth of a | | | | that would accrue up front and in a back load |
| portfolio since, it ties the money. The money is | | | | fund, you pay the commission upon selling all or |
| not invested in productive endeavors, thereby | | | | part of your holding. A constant load fund deducts |
| reducing the benefits that could have been | | | | commissions on a regular basis, while a no load |
| accrued. | | | | Fund does not charge any commission. There are |
| The various fees charged include shareholders | | | | many no load funds out there and in most |
| fees, which come in the form of loads and | | | | instances, they out perform the loaded funds |
| redemption fees. Loads are divided into front load | | | | since all your money goes into buying shares. |
| fund, back load fund, constant load fund as well as | | | | There are also many examples of load funds out |
| no load fund, calculated as a percentage of the | | | | there, but the most prominent ones are the index |
| amount of stock you wish to buy or sell. Annual | | | | mutual funds. |
| fund operating fees include the cost of keeping | | | | |