No Load Funds
  • A mutual fund cost calculator can make evaluating mutual fund expenses easy and convenient
  • The mutual fund expense ratio for no load funds is normally less than this ratio for loaded funds
  • The funds prospectus will disclose the mutual fund expense ratio information

One part of comparing no load funds and loaded funds is the mutual fund expense ratio. This ratio should be outlined in the funds prospectus. Some investors find that a mutual fund cost calculator can be very helpful when comparing funds, because these tools allow you to compare funds faster and more effectively. Mutual fund expenses are part of the cost of doing business, but as a smart investor you should evaluate these expenses to determine whether a mutual fund is a no load fund or not, and whether it is the right fund for your investment capital.

To evaluate the comparison between mutual funds which have load fees and true no load mutual funds, you need to be aware of what fees and expenses are usual, and which costs are part of the commissions and sales incentives that many loaded funds may pay. Some mutual funds may use different names for some mutual fund expenses, to cover the fact that these costs are commissions and sales incentives. The 12b-1 marketing fees are one example. This fee may be found in both loaded and no load funds, but the expenses covered by this fee may vary depending on the fund. A real no load fund will not have more than one quarter of one percent of fund assets as a 12b-1 marketing fee. This fee does have a legitimate purpose, to advertise and market the fund to draw in new investors. Some loaded funds also include sales commissions and bonuses in this fund amount as well though, which makes them a load fee. Many investors may not realize that these mutual fund load expenses can be included in the 12b-1 fee and the mutual fund expense ratio. Some of these fees take away from your return on investment and should be avoided.

Load FundsLoad funds may have a higher mutual fund expense ratio, and this can make a big difference when it comes to your investment return. If you choose funds with high mutual fund expenses, a big part of your investment capital may end up going to pay these expenses instead of working for you earning money. Compare all of the fees and expenses included in the mutual fund expense ratio, and evaluate which funds have the lowest expenses and will better serve your interests, instead of the interests of a broker or fund. Look at all of the fees and expenses that are included to determine whether the fund attempts to keep costs down, or if some of these fees are included simply to line the pockets of those managing and selling the fund.

A mutual fund cost calculator can help you examine and evaluate all of the costs and fees involved in a mutual fund expense ratio. These calculators are very helpful tools when it comes to comparing expenses. No load funds will usually have a lower mutual fund expense ratio, because there are fewer fees involved and the funds protect the interests of their shareholders more. Both types of funds, loaded and no load funds, will have varying mutual expense ratios. Some no load funds have a ratio which is less than one percent, while others may have a ratio which is significantly higher. Loaded funds will normally have a higher expense ratio than most funds with no load fees and charges. Look at each fee and expense that is included in each mutual fund expense ratio, and compare them one by one. Choosing mutual funds which have the lowest mutual fund expense ratio means putting more of your money to work for you, and less going out in costs and fees. A mutual fund cost calculator can help you compare different funds and the expenses involved in each one.