Mutual Funds

Mutual Funds

For those of you not familiar with the terms load and no-load, load or commission mutual funds are funds that are sold through brokers and salespeople. These funds have sales commissions of between 4 and 6% associated with them, meaning that, for example, a $100,000 mutual fund purchase would have a $4,000 — $6,000 commission paid by the client to the salesperson.

There are front-end loaded funds that have the commission is taken out of the investment immediately, or back-end loaded funds that have the commission taken out annually at the rate of approximately 1% per year. At Global quest inco, since | am a fee-only financial advisor and do not sell any financial products, only no-load, no-commission mutual funds are used.

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