No Load Mutual Fund



1. There is no difference between a no load mutual fund and a loaded one.

False
There is a difference between a these two items. Performing mutual fund research can be a great way to distinguish the differences that exist between these types of mutual funds. Typically, the term "loaded" means that commission will be paid to the brokers. The fees for this option can range from four to eight percent and the terms for payment can be varied.


2. Loaded refers to a fund that pays dividends to those managing the assets, unlike a no load mutual fund.

False
Both of these types actually will pay incentives for better financial performance to the party responsible for managing assets. With mutual fund research, the consumer will become aware that the loaded option pays a commission to the seller of the shares.


3. When an individual invests in a no load mutual fund, there are no up front fees to pay, starting the initial investment without a deficit.

True
The no load type of investment will allow an investor to start investments with the initial amount of money without paying upfront sales fees. This can be a good way to save money early in the investment stages.


4. Typically, a no load mutual fund does not perform as well as the loaded option.

False
For every loaded option, there are many other alternatives that perform as well or better. Mutual fund research and counseling with a financial advisor is recommended before making any financial decisions concerning investments. This is a period of learning that can assist consumers in making good financial decisions. Saving money and planning for the future is a very important part of life that should be done with a professional advisor.


5. If a person seeks financial advice and is prudent with investments, this person should believe that financial security will be possible.

False
Matthew 6:33 - Seek ye first the kingdom of God and His righteousness; and all these things shall be added unto you.


Debt Problems


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