No Load Funds
  • No load funds will usually offer better earnings than load mutual funds
  • Load mutual funds have higher costs and fees associated with them that lowers their earnings potential
  • 12b-1 marketing fees and load fees can have a big impact on your investment earnings

Comparing load funds versus no load funds means examining every single aspect of each fund type. One consideration that is important is the earnings of each fund type. The load fee charged by funds which have them do not have any effect on how a fund will perform, they are simply commissions paid to brokers and advisors to direct new investors to the fund. The earnings you receive will depend on the amount invested, the fund performance, and the fund management. Because of this loaded funds may have lower earnings than no load funds, and they also can have higher 12b-1 fees as well. The 12b-1 fees charged may be higher with loaded funds, because these funds may add commissions and sales incentives into this fee. Higher fees mean higher costs associated with owning an investment, and this also means lower earnings for you.

The funds prospectus can help you determine what fees are charged, so that you can decide if the fund is the right one to offer better earnings for you. Load mutual funds offer lower earnings, because of the load fee which is deducted. Front load funds offer the worst earnings normally, because this load fee is deducted before your capital is invested. If the broker or fund charges a six percent load fee in front, this is six percent of your investment capital which is not going to earn interest for you. Instead, you may have to keep your investment and put all earnings back in for years before your investment value may even be the same as your initial investment amount. The load fees will reduce your earnings amount, because these fees do not have earnings but instead go to a third party and deduct from your initial investment capital amount.

When it comes to earnings, no load funds are normally a better choice as far as earnings are concerned. These funds do not pay any broker commissions or load fees, which means all of your investment goes to work for you immediate. This increases the earnings base of your investment, which means more earnings as well. Comparing the earnings of load mutual funds and no load funds will normally show that the no load funds offer fewer expenses and costs, and as a result these funds will generally offer better earnings as an investment. Thorough research will allow you to compare all the factors of each fund you are considering, including 12b-1 marketing fees, earnings, any load fees or broker commissions, the mutual fund expense ratios, and other factors. Examine each funds prospectus closely, whether it is a load mutual fund or no load funds, to determine the expenses, fees, and other costs associated with each fund, and stay away from funds that require a portion of your investment capital because this lowers your earnings.

Load FundsWhen it comes to earnings and comparing funds, load mutual funds can lower the potential earnings you will see from any investment. No load funds put all of your investment to work earning you money right away, because there are no load fees taken off the top. These funds are the best way to invest for the best potential earnings. Choose no load funds which meet your acceptable risk levels and that are consistent with your investing strategies and goals. When it comes to earnings, there is no comparison between the two funds, and load mutual funds loses in a big way. No load funds are the way to invest if you care about earnings from your investment and want to maximize them. Choosing other fund types will mean paying out unnecessary fees and expenses that will lower your earnings.