ors can select a fund that specializes in the types of investment vehicles with which they are comfortable.
Mutual funds may also be distinguished as either load or no load funds. A load fund charges a fee at the time of share purchase in the fund to cover selling and administrative expenses. A no-load fund collects selling and administrative expenses out of the fund earnings. A load fund also collects a management fee; however, the load fund management fee is typically less than that of the no-load fund. The load fee charged by a load fund is typically much higher than that associated with a common stock purchase from a broker. The load fee for a mutual fund, however, covers both the buying and the selling of the share in the mutual fund. While no-load funds have an understandable appeal in relation to load funds, all no load funds are not necessarily a better deal than all load funds, although such may be the case most often.2
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