What Is a No-Load Mutual Fund?

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A no-load mutual fund is a mutual fund that has no expense ratios. Place the full power of an investment into the investment itself with help from a registered financial consultant in this free video on investments and personal finance.

Part of the Video Series: Beginner Investing
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Video Transcript

This is financial adviser, Patrick Munro talking about what is a no load mutual fund. A no load mutual fund is a mutual fund that has no expense ratios, in other words, you're getting the full power of your investment placed into the investment itself. Normally, no load funds have a front end sales charge. That is deducted because after all, no one works for free. That front end sales charge is paid, and then going forward, there is no load on the mutual fund. The acquisition charge is the only one that you would pay to buy that particular fund. Mutual funds, of course, you have to be very cautious. Even though there isn't a load present, the risk is still there, and the risk I mean is past performance. There's no indication of future value. A mutual fund may lose value, in other words, you lose principal, and this investment in mutual funds is specific, no loads included. Is not insured by any federal government agencies, so you're on your own, and the risk is evident. This is Patrick Munro talking about no load mutual funds.

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