Explain the difference between load and no-load mutual funds. | Numerade
Explain the difference between load and no-load mutual funds. | Numerade
VIDEO ANSWER: Explain the difference between load and no-load mutual funds.
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Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of 30 no-load mutual funds were selected. Data were collected on t
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