| Mutual Fund Front End Load |
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10can
Contributing Member
Cash: $ 8.55
Posts: 39
Joined: 13 Jul 2006
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| Mutual Fund Front End Load |
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I see while researching Mutual Funds that many have a Front End Load sales charge.
If the fund has a Front End Sales charge of let's say 5% how is that calculated?
Do they charge you 5% of the amount you are investing? If I invested $500. does that mean they take out $25. first then invest the rest?
If this is how a Mutual Fund broker makes his money then how does the one that sells "no load" funds make his money?
Thanks
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Tue Aug 01, 2006 8:11 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Why have only 95% of your money working for you? With very few exceptions, you will find plenty of comparable no-load funds with equal or better performance.
A 5% loaded fund has to gain 5.26% to break even; to me, that is additional, unnecessary risk.
"Expect me when you see me."
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Tue Aug 01, 2006 11:59 pm |
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