Then I thought to myself that performance of load mutual funds does not differ much from the no-load mutual funds, so at least I would save on expenses if I go with Vanguard. Am I right? The advisor said that load mutual funds have 4-5% expense ratio.The advisor probably said that the front end load, his commission, is 4-5%. That's the amount that you pay for his advice in selecting the portfolio. This differs from the annual expense ratio of the fund itself, which is the recurring part of the arrangement (assuming, of course, he doesn't sell you a back end loaded fund, and this can get very complicated very fast). If you can pick the funds yourself from Vanguard or Fidelity then yes -there is no need to use someone like him. He admitted that.
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