Why No-load Mutual Funds?

Deciding on the construction of a winning investment portfolio includes load free mutual funds. If you are thinking of investing in loaded mutual funds, stop doing it. Loaded funds will bring you no good. In case you don't want to listen to our advice, ask your broker to justify the purchase of a loaded mutual fund. If he manages to give you a sound reason for doing so, congratulations - you have managed to find the most persuasive and manipulative broker.

If your broker offers you a loaded mutual fund ask him/her about the particular classes and shares of the fund. Additionally, ask for the load free counterpart and the corresponding information. It should not be difficult to your broker to give you such information since a big portion of the mutual funds are of the no load type.

If your broker is unwilling to cooperate in finding the no load mutual fund suitable for you, get rid of him/her. After all you can supply yourself with the necessary information without the services of the broker thanks to the tons of information available on the myriads of resources.

One of these alternatives is the FundAdvice's website, where you can find an extensive list of loaded mutual funds with suggested no load alternatives. The founders of the website have made it more attractive to the users by including such services as profiles of the available funds. The fund profiles are constructed through Yahoo's quote engine and Morningstar's database. A second service is the availability of charts through which comparison between loaded and no-load mutual funds can be executed. This service provides you with the opportunity of seeing for yourself how much better a no-load mutual fund performs than a loaded counterpart.

One of the most widely recommended load free mutual funds is Vanguard 500 Index (VFINX). It is recommended as an alternative to approximately nine loaded mutual funds since it enjoys lower expense ratios and no commission charges.

The second highly recommended no load mutual fund is Fidelity Growth Company (FDGRX). It is recommended as an alternative to around eleven loaded mutual funds of the 100 large load funds. This load free mutual fund enjoys lower expense ratios and higher average returns. It is also recommended as an alternative to such Wall Street companies as Morgan Stanley Dean Witter, Prudential, American Express and etc.

The third highly recommended no load mutual fund is Invesco Technology II (FTCHX). This load free mutual fund is especially popular in the technology field and is recommended as an alternative to approximately seven loaded mutual funds. The fund enjoys extremely high performance ratios and low expense ratios.

Additional benefit of FundAdvice's website is the availability of models of no-load portfolios, which are constructed to address different levels of risk aversion. The website also provides extensive information about mutual funds and thanks to the added charts quick comparisons can be made, which can greatly facilitate your decision making.

As for the trading platform, we can highly recommend you try Zecco and E*TRADE.
Zecco offers free stock/etf trading, no account minimum, trading community, real time quotes, and is also protected and insured against loss by SIPC. Opening a Zecco account to take advantage of $0 stock trades allows you to save money, which you can reinvest instead of paying brokerage commissions. These fees can make really big difference for long-term investing options like retirement plans (Traditional IRA, Roth IRA, Rollover IRA - 401k).
E*TRADE has been ranked #1 Online Broker for third consecutive year by SmartMoney magazine (written by the Wall Street Journal staff and owned by Dow Jones). It was ranked based on the categories: Mutual Funds & Investment Products, Research, Trading Tools, Banking Services and Customer Service. They have been around for 25 years, have $100 Billion in customer assets and 4.5 million accounts. Open an E*TRADE account here and get bonus 100 commission free trades.

For the knowledge part we always recommend subscribing to the The Wall Street Journal (and save over 75%).

Bookmark this page (CTRL+D) :