NO LOAD FUND Meaning and
Definition
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A no-load fund refers to a type of mutual fund that does not charge investors any sales commissions or loads. In other words, it is a fund that can be purchased directly from the mutual fund company without the need for a broker or financial advisor's assistance. The term "load" in finance typically refers to fees charged to investors when buying or selling shares of a mutual fund.
No-load funds are designed to provide investors with a low-cost investment option. These funds do not have any initial sales charges (front-end loads) or redemption charges (back-end loads), making them particularly attractive to individual investors who prefer to manage their own investments. As a result of not paying commissions, the entire amount of an investor's money is directly invested into the fund, maximizing the potential returns.
Investors can easily buy or sell shares of a no-load fund directly through the mutual fund company or through an online brokerage account. This provides investors with increased flexibility and control over their investment choices.
While no-load funds do not impose sales charges, they may still have other fees associated with them, such as annual expense ratios. It is important for investors to carefully review the fund's prospectus and consider all costs before making an investment decision.
Common Misspellings for NO LOAD FUND
- no-load fumd
- no-loade fund
- noload fund
- no-load fund
- noloadfund
- noload fynd
- nooad fund
- No lode fund
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