Invest for the long term in funds that meet your style, investment objects, and comfort with risk. Consider Expenses Mutual fund companies are in business to make money, not to give away services for free. Typically they charge when investors buy or sell shares or as an annual fee. No-load funds don't charge a commission to purchase the fund, but they may impose a fee to redeem shares. Some funds levy a redemption fee only if investors cash in shares before a specific length of time.
Many people prefer no-load funds because all of their invested money goes to work from the start.
Load funds charge a sales commission, usually in the form of a percentage on the amount of new money you add to the fund. Others charge a commission when you sell the fund. Load funds are usually offered by brokerage firms. Advocates of load funds argue that the sales commission is justified by the fund's superior performance. Sometimes the fees on load funds are waved for retirement accounts.