Our panel of experts answers your mutual fund questions. But, few investors understand the costs that they are paying. Because costs are a dead drag on performance, they should be minimized as part of every investor s investment policy. There is a direct relationship between high costs and low performance. Fund costs are not really complex.
Sales charges some funds pay commissions to agents for the sale of the funds.
These costs are paid directly by the investor. No load funds Have no sales charges, and are the benchmark against which other funds must be measured. Investors that can pick their own funds should avoid load funds. The so called A Shares. Deduct a percentage from the investor before depositing the balance into the fund.