Mutual Funds
Commission LoadsAn investor needs to be seriously concerned about the load or commission charge made to the investor at the outset of entering a fund. Often, funds pay commissions for recommending the investor the load, or commission fee up-front, what is most noteworthy, is that the fund manager receives none of the load. This means that the fund manager has no incentive to do a better or worse job for that investor as that investor enters the fund. There are plenty of no-load funds available, from well-respected families of funds, and an investor is cautioned to be wary of any entity or financial planner or other person who is recommending without reservation a particular fund which has an up-front sales charge. While this may not be a bad idea, a savvy investor will at least investigate the motives and alternative funds with similar philosophies, to see if the commission is as high as other funds that may be considered to be equivalent to the fund being recommended.
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