Medium Capitalization
  • Medium capitalization value no load mutual funds usually have a majority of holdings in companies worth between two billion and seven billion dollars
  • No load mutual funds are the best way to keep investment expenses as small as possible
  • The best no load funds will depend on the individual investor

Medium capitalization value no load mutual funds are not as complicated as they sound, and understanding this type of investment can be very simple once the different components of the fund is broken down. Medium capitalization means companies which have a market value that is somewhere between two billion and seven billion dollars, so these funds only invest mainly in medium sized companies. The word value refers to the fact that these funds look for stocks and other investments which have a book to market ratio which is low, meaning that often the investment is a value, and is worth more than the market price currently asked. Value stocks do not carry high risks usually, and they are considered a less volatile option which has great future potential. Capitalization value no load mutual funds can cover any capitalization value, but they will normally have one level that is where a large portion o the fund investment pool is used. For medium capitalization funds it is the medium level, but there are also funds which specialize in small cap or large cap value investments as well. For some investors these may be some of the best no load funds available, and can be the perfect choice. Other investors may not be comfortable with these funds though, and may have different criteria for the best no load funds in their situation.

Choosing no load mutual funds can help cut down on investment costs, because these do not charge any of the expensive load fees. Load fees are basically sales commissions paid to the broker or financial advisor who directs the investor to the fund, and as such they do not help the investment performance at all. Load fees may hurt the performance of the mutual fund though, because this is an amount that is taken from the investment capital. Many times these costs are charged on the front end, so the amount is deducted before the money is even invested. The best no load funds do not have this problem, because there are no sales commissions paid. It is crucial that investors use caution when examining and comparing medium capitalization value no load mutual funds, or any other type as well. Look for any 12b-1 marketing fees, and determine exactly what percentage of the net assets of the fund this fee represents. If it is more than one fourth of one percent, the fund is not really one of the true no load mutual funds, but instead has hidden load fees that are passed off as marketing fees.

Capitalization value funds allow investors to determine the fund holding company values and size. These funds can cover all ranges of capitalization, and the portfolio holdings are chosen because they represent value and a much higher potential of an increase in the future. The stocks are chosen because their market price is undervalued, but that does not mean that these funds are right for everyone. Whether a company or investment is undervalued or not is open to interpretation, and each investor and professional may have different criteria in determining whether the market price of a company is too high or too low. This means that what one medium capitalization value fund manager may invest in will be a company that other mutual funds of this type will avoid. Each specific fund has acceptable levels of risks, as well as other differences, and determining what these are will allow for complete fund comparisons and better investment choices. The best no load funds will depend on all of the relevant factors, and if even one of these aspects change than the right choices may change as well.