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.