Different Types of Mutual Funds

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There are thousands of different types of mutual funds, including no-load funds, loaded funds and funds in different asset categories. Know what to look for when investing in mutual funds using advice from a financial planner in this free video on investments.

Part of the Video Series: Investment Facts
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Video Transcript

Hi there, I'm Cathy Pareto, the founder of Cathy Pareto & Associates, certified financial planner here in Miami, Florida. In this clip we're going to talk about the different types of mutual funds. Now I should tell you, I can probably spend a good hour on this subject alone, but let's keep it very much on the surface for this clip. Mutual funds come in all sorts of colors and breeds and types and let's talk a little bit about share classes and no load versus load. A no load fund is one that you can acquire without any kind of commissions whatsoever. You can buy directly from the mutual fund company or in some cases on a discount brokerage platform. Loaded funds are funds that have commissions, either upfront or on the back end when you sell it and so you want to be aware of what those costs are. Talking about costs, mutual funds always have costs internally in addition to any load or no load. And those are called the expense ratios or the operating expenses of the fund that the manager collects or the fund family. And then there's all kinds of different mutuals funds in terms of asset categories that you can buy, large companies, small companies, foreign, etcetera. I'm telling you, I can spend an hour on this. So just be aware that when you're buying mutual funds, boy there are over 12,000 mutual funds out there that you can look at and you have to really know what to look at, if you're buying loaded funds, etcetera. So that's a little bit about mutual funds and this has been Cathy Pareto in Miami, Florida.

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