Why Woud Anyone Buy A Load Mutual Fund?

The buzz in the investment market is all about no load mutual funds. Every investor has always been required to pay the price for load mutual funds. But with the new infusion of high quality, no load funds, the market direction has been shaken to its core. With the money that is saved in no load funds why would anyone buy a load mutual fund?

The first thing you have to understand about no load mutual funds is that you need the experience to make the right decisions. Experience takes time and a lot of research. Only the most savvy investors typically jump on the no load band wagon. They have the spreadsheets and the software to monitor and make their choices. If you are a beginner, this may seem overwhelming to you. Even though the no load mutual funds are more attractive, you may want to stick with the load mutual funds.

A load mutual fund has a commission or sales fee associated with the cost. The fee is to pay the investment firm for their expertise and knowledge on the investment recommendation. In addition, it may have other fees associated with it that drives up the expense of the investment. People that buy a load mutual do so based on the fact that it is backed by professionals that have more experience than they do.

A no load mutual fund might look good at first sight, but after all of the expenses are totaled, the load mutual fund might have the better longer return on investment. You must take all expenses into consideration before you invest.

No time is another reason why anyone would buy a load mutual fund. We are in a fast paced society, often multiplexing beyond reality. To add another responsibility to our daily routine is just not feasible. Some people will invest in load funds just because they don’t have the time to do the in depth research that is required.

If you have a relationship with an investment counselor that has a good proven track record. You may not feel comfortable venturing out on your own. The last few years have shown a market with many low points and the media is filled with stories about people losing all or most of their investments. Some people simply will not make an investment move without the advice of their investment counselor.

If you have the least bit of a personality that includes spur of the moment decisions on hunches or best bet investments, you will probably want to invest in load mutual funds. Investment counselors and firms will keep you on the straight and narrow even during the roughest market times. Load mutual funds are a better investment for you and will help to remove any impulse buying that you might be inclined to make.

Load mutual funds have an appeal and attraction for a number of people. You must examine your investment personality and the risk assessment of your investment before you make any decisions.