Why would I ever invest in a load fund?
There are a few cases for this from my view:1) Your way of investing relies on an advisor and you don't want an hourly fee. I know that I'm not like this, but I could picture people that do NOT want to do their homework on investing(Just like some people have nannies, mechanics and other experts to do most of the work) and so they PAY someone else to do it. What is wrong in that?2) There are no good no-load fund substitutes. For example, Fidelity's Select funds come in many different flavours that for some strategies these are precisely what is needed(Of course you can shift money from Select to Select without paying that 3% front-end charge that some people call a load).I think those are the 2 cases from my view.JB
If you could go back to the Peter Lynch days at Magellan, you shouldn't begrudge Fidelity their 3%. When there is a truly outstanding manager, he may be worth a load. But families like American Express, the fund families sponsored by the large brokers like Merrill, Prudential and the like, Van Kampen, and so on give mediocre performance with a load. You can do better. Paul Wick's Seligman fund has at times been an outstanding performer, but now there are others without a load that do as well. It is wrong to say you would NEVER pay a load, but before doing so you should have a hard look at what else is available. Best wishes, Chris
I have made a fortune with Fidelity Selects and I never paid a load becase I funded these selects within my 401K rollover account at Fidelity. In 1996 I exchanged funds to each of the Selects related with computers, electronics, telecomminications, etc. The technology Selects have performed well above my expectations since 1996. In fact my taxable long term savings/emergency account is Fidelity's Select Electronics. In 1996 I invested 2,500 and paid the 3% load. Never investing any additional funds my balance is now five figures. So I don't mind paying a load if my return is 30% annualized.
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