Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I'm new to this, and investing. What does the term no load mean, and what is it in reference too?

Since I consider myself a rather new investor, it's so rare that I get to help someone else out. So here goes:

"No Load" refers to mutual funds that do not charge a fee for buying or selling shares. However it's important to note that this does NOT mean they're "free".

Mutual fund companies have all kinds of creative ways to get at your wallet: They can charge you fees to cover their advertising expenses (12-b), fees to help pay for the guy managing your fund, and many others. Also, Uncle Sam dips his hand into the pot too whenever your fund sells stocks within itself and causes you to realize a capital gain,or when the fund distributes dividends (whether or not you reivested them or took the check).

From what I've read, studies have shown that "load" funds don't necessarily grow bigger or faster than no-load funds, and once you take into consideration the amount of the "load", you're often worse off than the no-fee fund.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.