The most common form of a mutual fund is an open-end fund, which means the fund can redeem or issue shares at any time. The managing company earns money by charging a percentage based on the total number of assets in the fund. In some cases, it will also earn revenue through sales fees. A no-load fund is one that does not have a sales charge to the investor to buy or to sell. There are, however, many very good funds that do not charge any fee to buy or sell and you can find a list by clicking on No-Load Funds.
Financial advisors can help, but their services usually aren t free.
If you invest in mutual funds without using a tax-sheltered account, your tax liability may increase. To improve returns, many fund managers buy and sell securities without considering the tax implications and the effect on the investor's overall returns. There are funds with big sales fees, large expense ratios, and very poor performance. Mutual funds are investments and one should understand that investments carry certain risks. Many investors simply don t have enough invested to insulate them from market risks.