Best Guide to Mutual Funds
Fundamentals of Mutual Funds
Types of Mutual Funds
Investment and Money market
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No Load Mutual Funds

A No Load Mutual Fund is an investment fund that is free to enter into. This means that the entire of amount of money you purchase into the fund with is invested into the fund. The shares from this type of fund are sold without commission or sales charge which means the shares are distributed directly to the company without going through a secondary party. This is the opposite of a load fund and generally a no load fund outperforms a load fund when taking the load into account.

A load is basically a commission charge so a no load mutual fund makes more sense as it has no charges. Sometimes a redemption fee is in place when funds are redeemed early. It is possible to trade no load mutual funds but there can be a transaction charge. These charges vary amongst brokers. Customers can find out before they invest in a fund whether these types of charges apply. The investment value of mutual funds can fluctuate. When the shares are redeemed, there is no guarantee on whether the share price has risen or fallen.

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