Mutual Fund Load Is Best for You By Ric Edelman From The Truth About Money . A lot of investors ignore load funds because of the fee. Yet, most realize that the load is a bargain when it is provided with competent counsel from a financial advisor. Here's an explanation of the different types of loads, how they affect investment return, and how to determine which one is best for you.
All mutual funds charge a fee.
It's called the annual expense ratio. The annual expense ratio is assessed daily. It is through this fee that funds recover their operational, administrative, and management costs, and, while all fund investors pay the fee, most are unaware of it because the fee does not appear on your statements. To determine the fee your mutual fund charges, read Page 2 of its prospectus. The reported return is after the annual expense ratio is deducted.