Looking at mutual funds and I see American Funds all have a load.
2007-02-10 10:28:28 · 8 answers · asked by billy paintbrush 1 in Business & Finance ➔ Investing
There is never a reason to pay a load, front or back end.
That's why Vanguard funds were created. There are few others now.
comparable funds (no-load vs load) show little or no difference in historical return and if you add in the load then no-load funds win hands down.
2007-02-10 15:33:41 · answer #1 · answered by hogie0101 4 · 0⤊ 0⤋
You'd have to call them to get that answer as few people out here could give you a valid reason why. (Lots of sarcasm)
Seriously though, look up dartboard analysis; it's funny. Some analysts at The Wall Street Journal, among others, simply throw darts at the mutual fund section and create a portfolio on those mutual funds that were hit by the darts. This "portfolio" has returns on par with, or better than, but not worse than, the loaded mutual funds.
2007-02-10 13:38:42 · answer #2 · answered by MinstrelInTheGallery 4 · 0⤊ 0⤋
You SHOULDN'T pay to get into a fund unless you're getting good, NEEDED advice. Even then, you're better off learning and making your own decisions. Avoid load funds and stick with no-load funds. These can be bought through a discount broker (probably NOT a bank). Studies have shown that load funds are no better on average than no-load funds. And there are PLENTLY of excellent no-load funds out there, so paying an unnecessary load is...well, unnecessary.
2007-02-10 12:51:43 · answer #3 · answered by LongArm 3 · 0⤊ 0⤋
The only reason would be if you thought a particular load fund would have better results than a similar no-load fund. The load is often part of the compensation for the person selling the fund to you.
2007-02-10 10:38:41 · answer #4 · answered by oakhill 6 · 0⤊ 0⤋
first of each and every of the question you asked shows which you're a beginner. no longer something incorrect with that basically a actuality. A Roth IRA and a no load mutual fund are no longer mutually unique. you are able to, in actuality, open a Roth at a no load mutual fund. Your age might make a Roth accou very adviseable. I exceptionally propose which you do no longer use a brick and motor financial corporation for any of your funds. Your six months reserve ought to be in a funds marketplace fund at a mutual fund corporation. on the comparable corporation you ought to open up a Roth account. the subsequent themes would be fund decision. A no load mutual fund furnish you with no training. maximum folk making an investment on their very own do a poor activity of choosing the funds to take a position in. go with an fairness or improve fund. stay faraway from a sector improve or fairness fund nad use a extensively invested fund. T. Rowe fee is a solid no load mutual fund corporation. there are various others. be cautious yet additionally be aggressive with how a lot you place funds into your Roth. be cautious as a results of fact it relatively is amazingly costly (in outcomes and taxes) to take the funds out formerly retirement (apart from some particular defined motives). Be aggressive as a results of fact of a saying that is going: "stay like now one else, so which you will stay like no person else". the funds you make investments now will compound to make you independently wealthy mutually as maximum of your friends are purely initiating to think of approximately offering for thier destiny. fee loose to e mail me in case you have questions. i'm hoping that this facilitates. Your achievement as much as now and the questions which you're asking are very superb
2016-12-17 13:47:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
American Funds is a great fund family that has had (notice past tense) wonderful total returns. But, since they have done so well, they have become very very popular. Go to www.investorwords.com and look up "asset bloat" in relation to mutual funds and the problems asset bloat can cause.
2007-02-10 13:30:34 · answer #6 · answered by gosh137 6 · 0⤊ 0⤋
I have been investing for 40 years.
And I have read many studies that show that "load" funds do not give back a greater return than "no Load" funds.
Find a place (like a bank) that sells no load funds (front or back) and see what they have that matches your risk profile.
2007-02-10 10:53:15 · answer #7 · answered by bob shark 7 · 0⤊ 0⤋
Actually you don't always have to...funds vary widely, both in initial cost, and maintenance costs.
Some, though not many, will let you start with as little as 1000...most average 2000 to start. You just need to research a bit...
2007-02-10 10:42:43 · answer #8 · answered by Michael B 6 · 0⤊ 0⤋