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Explain why people sometimes choose to purchase "load" vs. "no-load" funds

Explain why people sometimes choose to purchase "load" vs. "no-load" funds

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Answer #1

Load funds involve fee payment by the investor to a broker, advisor for purchase or sale of mutual fund.
People choose to purchase load funds to pay for research and advice by the advisor as all don't have sufficient knowledge of mutual finds. The research and analysis done by experts greatly benefit the investor who doesn't have knowhow or time to research for mutual funds.

People who have sufficient knowledge about the functioning of mutual funds will opt for no load funds. By minimising the investment any potential gain will yield higher retains as no expenses are spent on investing in mutual funds.

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