Over the years, the no load stocks investing area has grown substantially. With the internet, gone are the days when the only person you could get advice from was your investment counselor. Just because you don’t want to pay any load fees, doesn’t make you cheap. If you are a smart and savvy investor, you are aware of the market and know what direction you are heading in. The arena of no load stocks is a bit more precarious than other no load venues and you had better know your stuff before jumping in.

No load means there are no front or back end fees associated with the investment. That doesn’t mean it is free. There are costs associated with no load stocks investing. They are usually annual fees divided up or explained by a variety of descriptions.

No load stocks differ from no load mutual funds in that there are different rules that you must abide by. Depending upon the stock you are selecting, there are minimum dollar investment requirements. The lower the stock is on the totem pole of returns, the lower the minimum. And, of course visa versa. There are a few out there that will offer a one-share purchase plan for those of us that are no rolling in the millions of dollars. Some investments can be made through an automatic deduction program. You must obligate a certain amount to be deducted over a required number of months.

The best bet is to sign up for a DRIP (Dividend Reinvestment Program). Not all investments offer DRIP, but it’s an excellent method to have your money reinvested. These usually do not have minimum requirements, which is the best route. They also usually don’t have any costs or fees associated with the reinvestment. This will allow your investment margins to show a better increase.

Know the rules, regulations and requirements of the company before you invest. While most might have similar guidelines, each company may have subtle or blatant differences that can make or break your investment.

If you don’t know the market, you are going to have to put in a lot of time not only in the examination process of no load stocks, but in the overall and longer term performance. The good news is that in selecting no load stocks, you are selecting the less risky of the choices over no load mutual funds. No load stocks are guaranteed. This is particularly important during times of duress in the market.

Watching the trends: In the first quarter of 2010, intense amounts of money have been directed towards no load mutual funds. The fear is that this is going to cause another bubble. You would think that people would have learned with the dot com and housing bubbles that there is a limit to the expansion. Eventually, it must burst. Keeping your eye on the trend of no load mutual funds investing could veer you towards the no load stock side. There is safety in stability and guarantees.

The first quarter of 2010 has brought a revolutionary investment situation. More and more investment firms are adding their top of the line and formerly load funds into the array of no load mutual funds. Investors sprang forward to this exciting opportunity with more glee than a happy puppy. This seemed like a too good to be true scenario, and, in many cases it was. The result was the fact that the costs associated with these no load funds were actually there, but rearranged in a different manner. So do true no load mutual funds exist?

There are actually three types of mutual funds: one hundred percent no load (no fees associated), no load mutual funds with management or distribution fees (usually an annual cost) and load mutual funds (up front, back end and or additional fees). In searching for the one hundred percent no load mutual funds you must make sure that there are indeed no fees associated with the price.

The title of no load mutual funds is a bit misleading. While there are indeed no load fees, there are also no free lunches. Every mutual fund listed as a no load has some kind of an associated charge. In the one hundred percent no load, this only means there aren’t any upfront or back end load charges. You will have to understand that there will be some kind of a charge, somewhere. Usually it is a percentage charge. It ranges from .18% to .25% at the current time.

There are other situations that must be taken into consideration on a true no load mutual fund. Automatic reinvesting without associated fees is a major one. You may not have an initial fee, but you have to make sure there are no sales fees charged if the fund is automatically reinvested. This information should be part of the disclosure when you are making your investment.

If you are not as experienced in the investment world, you might work with an investment advisor that will use no load funds in exchange for an annual or per consultation fee. This might be a wise choice for you since the advisor doesn’t have any particular interest or reason for recommending a particular fund for investment.

Something very few people think about, but a topic that should be added to the cost of no load mutual funds is the cost of your time. If you are spending every waking moment pouring over investment sheets, doing on line research and waking up in the middle of the night to see what fund is doing better, you are investing your time and that, my friend, is money. While this may be a fun exercise or you might even consider it a hobby, the cost of your time needs to be added to the overall expense of the no load mutual funds.

So do true no load mutual funds exist? The answer is no. There is always some kind of price tag associated with a no load fund. The decision on what level of price tag you are willing to pay is all up to you. There are no load funds with low costs that should be part of your investment consideration.

Municipal money market funds can offer investors a number of advantages, and some of the biggest benefits with these funds is the special tax considerations which are given to them. Investors who find themselves in a high tax bracket, or those who just want to keep more of their money and pay out less in taxes, may find that municipal money market funds are an ideal choice for these purposes. These investments are very liquid, so you do not have to wait until a buyer can be found if you choose to sell your shares, and the tax advantages can be substantial. In some cases you may be exempt from local, state, and federal taxes on any returns that you earn with these investment choices, and this can add up over time.

When it comes to taxes and municipal money market funds, the federal government almost always exempts these earnings from federal capital gains or income taxes. The state government normally exempts all of these fund earnings when the municipality issuing the bond is in the state where the taxes would be owed, but this is not always the case. If you are not sure about the tax consequences on these investments where the state is concerned then you may want to talk to a professional or expert in this area before you make your final investment decisions. This can keep you from making a mistake which could result in taxes being owed, together with any applicable penalties and interest that may occur because of the mistake.

The guidelines when it comes to local taxes on earnings and returns from municipal money market funds is even more confusing at times, and can be tricky to navigate unless you understand the tax laws in your local city or town very well. Normally any earnings from a bond issued by a local municipality will be exempt from taxes in that locality, but will normally be taxed in other localities within the same state. This often results in investors that want to invest in municipal money market funds that hold local investments in the portfolio. Just like with the state tax question, if you are not sure whether or not taxes will be owed at a local level you should get professional tax advice on this subject before you make any final investment decisions.

Municipal money market funds can be a terrific investment choice, for many reasons including the tax optimization aspects of investing. These funds may be exempt from federal, state, or local taxes, or any combination of the three, depending on the municipal securities held in the fund portfolio. You can find these funds in a variety of types, from ones that only invest in United States municipal securities all the way to funds which only invest in local municipal securities, and each type will offer different tax advantages. As long as you are willing to do the research and take the time to compare these funds you can optimize your tax situation, so that you get to keep more of your money and put it to work for you instead of giving it to the tax man.

The latest hot craze in the investing arena is now no load mutual funds. While many have waited for a long time for this to come around, the dream come true status carries with it the usual oddities of questionable companies. As an investor, you may want to take advantage of the benefits, but how do you work with no load mutual fund companies?

If you are a neophyte, you need to know the difference between load and no load mutual funds. Historically, the best mutual funds were listed as load. It included costs that are associated with the investment: commissions and sales costs. The additional costs increased the investment and offset any possible margin gains that you would receive. Because they were the better selection, most investors thought it was worth the price. No load mutual funds were not quite as good, a bit more risky. No load meant that there weren’t any additional commissions. Typically these involved investments where a company might not have the longevity or may have had some questionable history or credit situations.

With the fluctuating market of the last few years, investors have become scarce. Those that do invest are being very very careful. In Nov. 2009, one of the big investment firms opened up their doors to include many of the best mutual funds to the no load selection. The purpose was to attract investors to their company with the glimmer of a better line of investment options. It took a few months, but other investment firms joined the array of no load mutual fund companies. With the gates opened, investors are now being given options like never before.

If you are considering investing in no load mutual funds, you need to make sure that the company you are working with is well established. That means they have been around for a while. Review their investment statistics over the last five years, minimum; ten years recommended. What kind of results have they brought to their investors? You should be looking for the companies that have a nice steady increase, no extreme spikes or dips.

The no load mutual fund companies that are the best have a larger group of choices for you that include individual as well as families of investment. The variety should include a broad range of investment types. Be wary of any company that focuses on one line of business.

While no load mutual funds are as attractive as beach front property, there are some hidden factors. Make sure the companies that you are considering do not have hidden fees for their no load mutual funds. These are usually an annual fee, disguised as a management cost. This will reduce the value of your investment and, when you do the numbers, could actually cost more than a load mutual fund.

Always request a prospectus for any investment that you are thinking about. Investment firms make these available to you and the process should be easy. Don’t accept any excuses if this is not the case. Move on.

If you simply aren’t sure what to do, it would be advisable to hire an investment counselor. Their knowledge is well worth the dollars spent, because they do this for a living and will have more information at their finger tips than you could find on your own in weeks.

What are closed end municipal bond funds? These are closed end mutual funds which are traded in the same way that individual stocks are, and that invest primarily in municipal bonds of varying lengths and from different municipal entities. These shares must be purchased through a broker so there is a commission which is charged, and this amount will vary depending on the specific broker that you choose to use. Closed end municipal bond funds do pay out dividends, and are usually looked at by investors as a form of an index fund. They are an investment company, and the management style used is active rather than passive. Investors in these funds have voting rights, and a board of directors is appointed to choose a portfolio manager and investment advisor for the fund activities and investment portfolio.

Closed end municipal bond funds are mutual funds, and this means that many investors pool their capital, which is managed collectively. Municipal bonds can be an ideal choice for many investors because they are a fixed income security, one that is backed by the issuing municipality. They are normally considered safer choices than stocks or some other investment types, but there are still risks involved. Shares in the fund are traded on open exchanges or over the counter, and these shares can split just like individual stocks can. The laws of supply and demand dictate the price for any of the closed end municipal bond funds, and this price is also affected by the market volatility at any given time.

Choosing closed end municipal bond funds instead of building a portfolio one stock at a time makes sense, because a mutual fund will allow you to combine your resources with those of many other investors, and the large amount of capital available will work to the benefit of all the investors involved. The fund manager or advisor will be the one to determine which municipal bonds are bought and sold, and will keep track of the cash reserves, portfolio holdings, bond maturities, and any applicable changes in the interest rates, as well as other fund activities and information. These funds may be a good choice for some, but they can also be a bad option for some investors, depending on the investment strategies being used and the overall investing goals.

Evaluating different possible closed end municipal bond funds should include comparing certain factors, because not all of these investment types are the same and some will have higher costs or lower returns than others do. You should look at all of the relevant information for each fund, and then decide which one fits best with your portfolio holdings and desired investing guidelines. Make sure you consider all of the expenses, and the commissions should also be examined closely. Look at the fund performance over the last few years, and evaluate each manager or advisor individually. Consider how long each has been with the fund, and whether the performance improved or declined since the manager took over the position.

If you want to know how to start an investment fund you may be surprised by what you discover, because this is not as difficult as many investors believe. There are some steps that you must follow exactly, and there is work involved, but many investors have been able to start their own investment fund rather than rely on a fund manager or advisor to make the best possible investment decisions. This is not a decision that should be made lightly, only after careful consideration and planning because this process does have some possible risks and perils involved. First you will need to make sure that you understand all of the applicable laws and regulations that will apply, so that these are followed closely.

Learning how to start an investment fund means learning about corporate structuring, because an investment company is usually considered a management company. You will need a business plan in place, and you will also need to know about the investment company act which regulates investment companies. Most investment funds will need to be registered with specific agencies or entities, and this registration is crucial for your investment fund to be legal if it is required. Without the proper registration your investment fund may not be legitimate, and you could end up on the wrong side of the investment laws. Not all investment funds need to be registered, and if your fund will not be investing in securities then registration may not be necessary. This is because the investment company act only applies to those companies which invest in securities normally, but it is a good idea to verify whether or not your fund will need to be registered so that you set up the fund properly right from the start.

Understanding how to start an investment fund means being realistic about the costs that are involved. Being the owner of the fund means paying certain expenses, and once the investment company has been started and is operating there are costs involved with this process as well. You may need legal advice to ensure that you have all the required paperwork and registrations in order, and this can cost anywhere from fifty dollars to several hundreds of dollars an hour for legal counsel. Another consideration is the type of investments that your fund will include in the portfolio. This is a consideration that should be decided before you take steps to start the investment fund.

Knowing how to start an investment fund is just the first part of the equation, and once you have the company up and running you are going to need investors to buy in. This can be done in a number of ways, depending on the types of investments that you are offering, your fund advertising budget, and your level of creativity and investment networks. A number of investors have been successful at starting an investment fund, while others have failed at this same project. If you are going to take this step make sure that you understand everything involved, so that you do it properly and have a better chance for success.

How do closed end investment funds operate? These funds, sometimes called a closed end company, are one of the most basic investment company types. Closed end investment funds operate just like individual stocks do, and this is because the shares of the fund are traded just like stocks on an open exchange market. These are considered closed end because it is only during the IPO, or initial public offering, that this type of fund will raise money. Open end choices can raise money at other times. A set number of shares are issued, and this number usually stays constant. There is a Board of Directors for the fund, and these individuals are the ones who decide on the portfolio manager and the investment advisor. The manager and advisor are the ones who will make the actual decisions concerning the investments for the fund.

After the initial public offering, the market will determine the price of a share for closed end investment funds. The price set by the market can be either more or less than what the net asset value per share is, and if the price is less than many investors would consider it a smart investing choice. Closed end investment funds do not have to worry about keeping a cash reserve in the portfolio for liquidity, because the number of shares in circulation are fixed and are normally in high demand if an investor wants to sell. These shares also have dividend payments just like stocks which are traded on the exchange.

A big advantage in the difference between open and closed end investment funds is that the closed end options do not have the same liquidity needs as an open ended fund does. This means that a closed end choice will have greater investment flexibility, and can invest in sectors and areas that other investment choices may not be able to. One drawback though is that these funds are affected by market factors and volatility. Closed end investment funds operate very similar to a stock, but with some advantages. These investments can be a good choice for many investors, but they are not right for everyone. Make sure that you research and compare each possible fund choice, so that you make the right decisions and protect your investment capital.

Closed end investment funds must be purchased using a broker, and this can mean extremely high fees in some cases. Before you make any final investing decisions, look closely at all of the fees charged by each choice. You may be surprised to find that some funds may charge more than double the amount in fees as others do. Keeping the costs low is one of the ways to get the best possible returns from your investments, so you will need to evaluate and compare the total cost in fees and expenses that each fund charges. This will help you decide whether closed end investment funds are the right choice in your specific investment situation, or whether you should look at other investment types instead.

Comparing load vs no load mutual funds should involve a number of factors besides whether or not there is a load fee involved. Many investors choose loaded funds with the mistaken belief that if there is a commission involved a better investment choice will be made, and this is not true. A load fee is simply a commission to a broker or other salesman, who chooses the investments that your capital is used for. Sometimes these professionals may get a fee from you and a sales commission from the mutual funds you are directed to, so there is no guarantee that the advice you may be paying high dollar for is impartial, or even good investment advice. For this reason many investors choose no load funds instead, but then make the mistake of not comparing fund expenses and other associated investment costs.

When evaluating load vs no load mutual funds, you will need to determine whether you are comfortable doing the necessary fund research and evaluations. Most investors have the ability to make their own choices, and to do the work needed to find funds that are ideal for their investment purposes and goals. Paying a fee to someone else to do this is not only a waste of money most of the time, but can also cause you to lose capital if the advice you pay the fee for is not the best possible. Often investors choose these funds in the belief that they will perform better, but this is not always true. Instead you will need to look at all the relevant factors with each mutual fund, and then do the comparisons to find the right fund choices for your unique investment situation.

If you will be comparing load vs no load mutual funds, the load fee is relevant but it should not be the only factor that you evaluate. Fund expenses and fees will vary from one fund to the next, and some no load mutual funds may end up costing more even without a load fee, because the fund expenses are much more. Investing wisely means keeping the costs and expenses down, so more of your capital is put to work for you. The manager of the fund is also important, because every fund manager will have a different education and experience level.

Load vs no load mutual funds is a comparison that all investors should make. The generalization that all no load funds have lower fees and expenses, or that all load funds offer better performance, is no longer true. This has caused many investors to rethink the comparisons between these two types of mutual funds, and to evaluate each investment choice on a number of different criteria, rather than just the fact that the fund has a load fee or is a no load option. Taking the time and doing the research needed will show you that not all load or no load funds are equal, and while most no load funds do cost less this is not always true.

When it comes to no load funds there are two types of asset allocation, and these are passive or active asset allocation. Each of these types may be right for some investors, and many no load funds use the active style. Asset allocation is an important component of investing, and will affect the portfolio performance. A diverse portfolio with many asset classes will normally perform better than one that is limited in diversity. This is because while some sectors of the market are falling others are normally rising, balancing out the results and reducing the risks because of market volatility. One drawback that the active strategy has is that there are more trades within the portfolio, and this can drive up the costs. The passive method will allocate the assets and then leave them alone most of the time.

Active asset allocation involves frequently changing the diversity and make up of the investment portfolio, in an attempt to get better returns because of changing market conditions. Those against this method point out that it is not possible for any investor to tell exactly how any asset will perform in certain market conditions, and that active allocation increases the risks and costs of the fund without raising the returns by a substantial amount. This is impossible to tell in some cases though. Every investor agrees that asset allocation is important, but the method used for this will vary from one investor to the next.

Changes to the portfolio asset allocation may be needed at times, but these changes should not occur regularly without having a specific reasoning behind every change made to the portfolio. Active asset allocation is used by many investors so that returns are improved. The point of active asset allocation is that the risks of investment are reduced because the portfolio is changed frequently to reflect market conditions, and the returns for the investment may increase. Some investors may change the asset class percentage of the portfolio, while others may just change the percentages held in each class. The argument against active asset allocation is that the market is usually efficient, so frequent changes are not normally needed to protect the investment portfolio.

Many no load funds use active asset allocation to try and improve the returns for the fund participants, but this step may also increase the investment costs and fund expenses as well. Whether you choose a no load fund that involves active asset allocation or you go with a fund that uses the passive method instead will depend on your personal preferences. There are numerous no load funds which use either method, so your decision will not limit the fund choices you have. It is also a good idea to research the manager or professional who makes the asset allocation decisions, and evaluate their experience and track record in this area. The type of asset allocation a no load mutual fund uses is just one of the variables that should be examined before you choose the right no load funds for your investment purposes.

For those of us that are hard working every day people, the idea of no load mutual funds has an excellent appeal. In an age where we are saving every last dollar investing can be a tricky business, it is refreshing to know that we have some options. It sounds easy, but you will have to do the research on your own. Information changes daily, so you will have to stay on top of the no load mutual funds list to make sure you are updated.

No load mutual funds are investments that do not have additional commissions or sales costs added to them. This means that one hundred percent of your dollars are applied to the actual investment. The concept is a good one, but, like trying to sell your house on your own, there is a reason that the commission is added to an investment: You are paying for someone else’s expertise and knowledge. Professional investments counselors make it part of their business to know the status of the investments and have up to the minute information. If you think you are up to this, no load mutual funds are an excellent choice for you.

If you think you are savvy enough to jump into the no loads investment arena, you will have to do the work on your own and follow your investments on a daily basis. Looking for the long term overall gain is the best bet. You can view information at Kiplinger’s or Morningstar websites to get up to the minute updates.

Studies have shown that there is no significant performance difference between load and no-load mutual funds. If you have a bit of time and the energy to do the work, you have a chanсe to put those extra dollars to work for you.

Researching recent performance is not good enough. You should be reviewing performance over at least a ten year period, taking into consideration the condition of the market during each year, the assets of the company and the minimum investment required.

If you are considering international mutual funds, do some additional research and look into the foreign tax situation. You will be required to pay foreign taxes but may be able to take a foreign tax credit on your income tax. Consult with your Accountant to make sure that you get the best tax information.

Here is a no load mutual funds list of the best performers in 2009 to consider:

No-Load U.S. Stock Mutual Funds
• Baron Small Cap (BSCFX)
• CMG Focus (CGMFX)
• Dodge & Cox Stock (DODGX)
• Fidelity Contrafund (FCNTX)
• Longleaf Partners (LLPFX)
• Selected American Sahres S (SLASX)
• T. Rowe Price Equity Income (PRFDX)
• T. Rowe Price Mid-Cap Growth
• T. Rowe Price Small-Cap Growth

No-Load International Stock Mutual Funds
• Artio International Equity II A (JETAX)
• Dodge & Cox Int’l Stock (DODFX)

No-Load Bond Mutual Funds
• Dodge & Cox Income (DODIX)
• Harbor Bond Institutional (HABDX)
• Loomis Sayles Bond (LSBRX)
• Vanguard Infl-Protected Secs (VIPSX)