- A high current yield offers higher yields as well as higher risks, so they may not be for very investor
- High current yield funds offer a chance to get higher yields for your investment, usually by investing in junk bonds and other high yield securities
- A high current yield fund that is also a no load fund offers a better investment option because there are no load fees to deduct from the yield
What is a high current yield no load fund, and what does it offer investors? These mutual funds offer a high current yield, but they do this by taking bigger risks than some other funds, such as those which are conservative and protect the capital at the expense of the yield. High current yield funds invest in debts which are considered low quality, and that are at a big risk of defaulting. Because of this higher risk, the yield for these investments are greater as well. Choosing high current yield mutual fund that is a no load fund makes great financial sense as well. No load funds do not charge any load fees at all, whether they are on the front end, the back end, or both. With these funds you do not get any financial advice, such as that given by a broker or financial advisor concerning the right fund for your investment goals and needs. Load fees are also commonly used as a commission fee, and it goes to the broker or advisor who advises you on which funds are the best for your investment capital and which ones are not suitable for what you are looking for.
Because high current yield funds are riskier than many other fund types, doing the appropriate research and fund comparisons with these funds, and all no load funds, is important. You need to check every fund you are considering, and compare all of the different features which you want in a mutual fund that you invest in. You should also look for hidden load fees. Some funds will state they are a no load fund but this may not always be true. Some funds hide load fees in the 12b-1 marketing fee instead of classifying them as load fees, but they are load fees regardless if the fee is used to pay a sales commission for bringing in new investments. If you are considering high current yield funds, look at the marketing fee percentage carefully in relation to the net assets of the fund. If the marketing fee is more than a quarter of one percent of the total net assets of the fund, it is an impostor and is not actually a true no load fund. Some funds will charge a redemption fee if you do not hold the investment for a minimum time period, normally between thirty and ninety days, and these are not actually load fees. These fees are charged to cover the cost of frequent fund transactions, so that the entire investment pool does not have to cover these costs and receive lower yields as a consequence.
Mutual funds which have a high current yield include the Pax World High Yield Bond fund. This fund is no load, and the aim of the fund is to find high levels of current income investments. This includes junk bonds as around eighty percent of the fund portfolio. These bonds are normally rated at less than BBB- according to Standard & Poor. Other investments included in the portfolio can include preferred stocks, deferred payment securities, zero coupon bonds, convertible bonds, and many other securities which offer a high current yield. The fund requires a minimum investment of two hundred and fifty dollars for individuals. Another high current yield fund is the Wells Fago Advantage Short Term High Yield Bond Fund, which trades under the symbol STHBX. This is also one of the no load high current yield funds. No matter which fund you choose, make sure that it fits well with your investment strategy and goals by doing all of the research and comparisons before making an important investment decision.