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June 9, 2006, Newsletter Issue #21: Load vs. No-Load Mutual Funds
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Tip of the Week
A mutual fund load is the amount of money you are charged to buy the mutual fund through a broker. A front-end load is paid when you buy the mutual fund. A back-end, or deferred load, is paid when you sell. If a mutual fund has no load, you are buying it directly. Loaded funds don't perform any better than no-load funds, so stick with mutual funds that don't charge a load. You'll get all of the same mutual fund benefits without the extra fees.
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