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Author Question: Regarding load and no-load mutual funds, (Read 172 times)

justinmsk

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Question 1

Stock brokers typically do not recommend no-load funds because


◦ the return is lower than on load funds and brokers want to sell only the best funds to their clients.
◦ federal law prohibits brokers from selling no-load funds.
◦ no-load funds do not pay a fee to the broker for selling them.
◦ there is no secondary market for them.

Question 2

Regarding load and no-load mutual funds,


◦ load funds usually outperform no-load funds.
◦ no-load funds perform at least as well as load funds even when the fees are ignored.
◦ the two types of funds perform about the same considering the fees.
◦ load funds may be bought directly, whereas no-load funds must be purchased through a broker.


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Marked as best answer by justinmsk on Apr 14, 2019

Jevvish

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Reply #1 on: Apr 14, 2019
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justinmsk

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Reply #2 on: Apr 14, 2019
Excellent



Jevvish

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Reply #3 on: Apr 14, 2019
Great! Please up vote :D



 

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