What are no-load funds?

Aman9025 Sep, 2023Finance

No-load funds are mutual funds that do not charge a sales commission when you buy or sell shares. This means that the full amount of your investment goes into the fund, minus any applicable fees. No-load funds are typically sold directly by the fund company, rather than through a broker. Why invest in no-load funds? There are a few reasons why you might want to invest in no-load funds. First, they can save you money on your investment fees. The sales commission on a load fund can be as high as 5%, so if you invest Rs.10,000 in a load fund, you?ll lose Rs.500 just to buy the shares. No-load funds don?t have this fee, so you can keep more of your money invested. Second, no-load funds are often more transparent than load funds. Because they?re sold directly by the fund company, you?re more likely to have access to all of the fund?s information, including its fees, performance history, and investment strategy.?