No-load Funds Versus Loaded Funds: Which
Should You Use?
Buying a no-load mutual fund is similar
to buying a house without a real estate agent. You have to
do your own homework, but you don't have to pay a commission.
Buying a loaded mutual fund is similar to
buying a house with the help of a real estate agent. You have
the real estate agent available to help you, but you have
to pay a commission. As with a stock broker, the real estate
agent gets paid only if a sale is made, so it's in their best
interests to make a sale, even if the house or mutual fund
in question is not a good fit for you.
So it comes down to a simple question: do
you need help in choosing and buying a mutual fund? We think
most people do need help, and that's why we have several model
portfolios comprised of mutual funds. We recommend no-load
funds because if you follow one of our model portfolios, you
won't need a full-service stock broker to help you. And by
using our services instead of a broker, you get independent
investment advice that is free of conflicts of interest.
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