Finance:Zero-load
From HandWiki
Zero-load refers to a mutual fund that charges no commission or sales charge.[1] Instead of using a secondary party shares are generally distributed directly by the investment company. Research has shown that there is little difference in the performance of zero-load funds in comparison to load funds.[2] However, as an investor in a load fund has to pay out fees to buy in or out, a load fund must perform better in order for the investor to get the same outcome. This means that in essence a zero-load fund starts the 'investment race' with a headstart.[3]
References
- ↑ "No-Load Fund Definition". Investopedia. 2009-02-15. http://www.investopedia.com/terms/n/no-loadfund.asp. Retrieved 2012-08-06.
- ↑ Morey, M (2003). "Should you carry the load?". Archived from the original on June 17, 2010. https://web.archive.org/web/20100617002240/http://webpage.pace.edu/mmorey/publicationspdf/shouldcarry.pdf. A comprehensive analysis of load and no-load mutual fund out-of-sample performance, Journal of Banking & Finance, Issue 27, pp1245–1271
- ↑ "Load vs. No-Load Funds - Mutual Funds Center - Yahoo! Finance". Finance.yahoo.com. https://finance.yahoo.com/funds/how_to_choose/article/100601/Load_vs__No-Load_Funds. Retrieved 2012-08-06.
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