Mutual Fund "Loads". They are fees right? What is the difference between these two figures?

[urob8]

Mutual Fund "Loads". They are fees right? What is the difference between these two figures?

Sales LoadOffering Price 4.75% Sales LoadNet Asset Value4.987%IS one when you buy and the 2nd when you sell? You'd have to pay both?Also, if you have a load, does that mean there is no expense ratio if it doesn't list one?I understand expense ratio to be what you pay annually (ex 1.43%) of your total holdings, right?

 

[Uriah]

Mutual Fund "Loads". They are fees right? What is the difference between these two figures?

Don't waste your time buy no load funds! When you buy loaded funds you are paying the broker not yourself.

 

[urtenfifteen]

Mutual Fund "Loads". They are fees right? What is the difference between these two figures?

1. "Sales Load Offering Price 4.75%" means if you gie them $1000 to buy the fund, 4.75% ($47.50) will disappear and you will get $952.50 worth of mutual funds.2. 'Sales Load Net Asset Value 4.987%" means that you paid $47.50 sales charges to end up with $952.50 of mutual funds, and that works out to 4.987%.These are 2 ways to explain that your sales charge is taken out at the time of purchase. With this share-type of mutual fund (it's probably an A-share) there should be no sales charge to redeem (sell)....but there may be an early redemption charge (some special or international funds ding you an extra 1-2% to get out in the first 12-24 months)There is always an expense ration - that's a disclosure of how much the MF took out of performance before calculating the fund's value. Published fund values and performance numbers are all calculated and shown AFTER the internal expenses are taken out. So a MF that has reported performance of 10% with a 2% expense ration is better than a MF that made 9% with a 0.5% expense ratio...the first one nets you 10% and the second nets you 9%....the expenses are already taken out before calculating NAV or performance. By the way, it is ILLEGAL for somebody to sell you a mutual fund without first explaining the different share classes (generally A, B, C and 'no-load'), breakpoints on sales charges, front-end and back-end charges (if any) and internal expenses. If your advisor can or does not do that, find another advisor.["Uncle DUD" is full of opinion but no facts in his answer, by the way.]

 

[urrrp]

Mutual Fund "Loads". They are fees right? What is the difference between these two figures?

Here's what I know;There are companies that charge a load to get in. There are companies that charge a load to get out. I have never seen one fund do both.A sales load (charge) goes to the seller of the funds. The mutual fund company makes their money via the "expense ratio" All Mutual Funds have expense ratios. No load funds have no "load" because you buy direct from them.A loaded fund simply pays for the marketing of those funds. You get "investment advice" for buying a loaded fund. Sometimes good.... Sometimes not good advice.If you're smart enough to ask these questions.... you're smart enough to learn about "asset allocation' and pick your own no-load funds.