No-Load Fund

No-Load Fund: A no-Load Fund is a type of mutual fund that does not charge any sales commissions or loads when Shares are bought or sold. This means that investors can purchase Shares at the net Asset value (NAV) without incurring additional fees, which can enhance overall investment Returns.

Examples:

  • Vanguard Total Stock Market Index Fund: This fund has no load fees, allowing investors to buy Shares at NAV.
  • Fidelity 500 Index Fund: A no-Load Fund that tracks the S&P 500 and does not charge a sales commission.

Cases:

  • An investor looking to minimize costs might choose a no-Load Fund over a Load Fund to avoid upfront or backend fees.
  • In a rising market, an investor can benefit from compounding Returns without the drag of sales charges in a no-Load Fund.