Equity Market Neutral
  • Equity market neutral no load mutual funds usually attempt to take both short and long positions in the markets traded
  • An equity market neutral fund can be perfect for some investors, and a bad choice for others
  • The best no load funds will not involve any hidden loads or marketing fees

Equity market neutral no load mutual funds can be a good choice for some investors, but others may want to stay clear of these funds for a number of different reasons. An equity market neutral fund deals with both long and short positions, and uses an investment strategy which tries to make a profit from both the up and down movement of one or more markets. These are considered some of the best no load funds possible for some because these funds are very flexible, and have the ability to exploit movement in the market regardless of which way that movement is headed. By taking both sides the hope is that the equity market neutral fund will see better returns, and less risk of capital losses as well. Because these are no load mutual funds, they also carry a lot of extra benefits as well. There are some facts that every investor should be aware of when no load funds are concerned. These funds are popular because they do not carry high load fees, but in return there is no professional investment advice given either. The investor is responsible for doing all of the work, finding and comparing funds, and making all of the investment decisions needed.

The fact that equity market neutral no load mutual funds do not offer expert advice is a negative or a positive, depending on the investor. Most investors are extremely capable of doing all of the work on their own with no professional help, and in these cases paying a load fee is just paying more for the same investment. The best no load funds have lower fund costs and operating expenses, so that more capital stays in the investment working and less is taken out to pay fees and costs. The whole point of investing in an equity market neutral fund is to put the money to work, so why pay it out for inflated fees and advice which is not always the best possible? Some brokers and advisors accept fees and commissions from the funds as well as the investor where load funds are concerned, and this can mean professional advice which is not the best, or even wrong considering the specific investment goals and strategies. Equity market neutral no load mutual funds do not carry this risk, because the investor does all of the work and also makes every single decision made.

An equity market neutral fund investment with the best no load funds possible can be exactly what a number of investors are looking for. When no load mutual funds are involved, it is necessary to look for hidden load fees though. Most funds which claim no load status are just that, but there are some that are deceptive and try to add in sales commissions and load fees without drawing attention to the fact. A knowledgeable investor, willing to do the necessary work, will be able to identify and eliminate these fund choices. Look at whether or not the fund has a 12b-1 marketing fee or not. If this fee is charged, determine the amount. If the marketing fee for an equity market neutral fund is more than point two five percent of the net assets for the fund, there are generally hidden load fees involved. The best no load funds do not charge any 12b-1 marketing fee, although some no load mutual funds may charge a small amount which actually goes to cover the cost of marketing the fund and not as fees or commissions. Some funds do this to keep the fund operating costs down for investors.