No Load Funds

Investing in mutual funds can be risky because they are not insured by the Federal Deposit Insurance Company (FDIC) and they are subject to taxes and other fees. Mutual shares are a combination of stocks, bonds, assets, and other securities that have been combined and sold as a portfolio. This allows an individual to make an investment that is diversified that provides more security. The three main types of funds include money market, bond or fixed income, and stock or equity. The best no load mutual funds are ones that do not charge a fee for the sale. However, other fees will apply which usually include purchase, redemption, exchange, and account fees.

Money market shares pay dividends on short-term investments issued by the government and corporations. Money market shares have a lower risk to the investor compared to bond and stock shares. Inflation can shrink returns on money market shares over a period of time. Investing in mutual funds for the most part is a stable way to invest because the net value of one share usually retains a stable value. God's word teaches that an investor should make wise choices when putting money up for usury. Since there are many choices an individual would be considered wise to not only choose no load shares but to invest in several different arenas and not sticking all of his or her money into one arena. In addition, an investor should not be trusting in a return on investments but instead should be trusting in God. "Charge them that are rich in this world, that they be not high minded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy" (I Timothy 6:17).

Bond and stock shares have higher risks compared with money market shares but they are not restricted to short-term investments. Insured bonds or U.S. treasury bonds carry the lowest risk. Bonds that have been purchased from other companies may be a higher risk because companies may not pay their debts and can file bankruptcy. Stock shares can quickly increase and decrease in a short period of time. Stocks shares are the best no load mutual funds over the long term. Stock shares consist of growth, income, index, and sector funds. Growth and income shares pay regular dividends either in cash or additional stocks. Index shares achieve the same rate of return based upon the market index price. Sector shares are tied in with a specific industry, technology, or consumer products.

Shares can be purchased through brokers, insurance agents, banks, and financial planners. An investor can also purchase shares straight from the fund itself by making a phone call or perusing their website. Financial pages of major newspapers will usually have a list of available mutual funds. Investing in mutual funds can be risky but the individual who chooses to do so should find out about investment strategies associated with them. Information about smart investment strategies can be found on the Internet.

Selling shares will mean paying taxes and fees as well as taxes on any capital gains. Individual stock shares allow the investor to know the real-time value at any given time. The value of other shares may depend upon the net asset value (NAV) which will not be calculated until several hours after the shares are sold. Some best no load mutual funds are exchangeable. This allows the shareholder to transfer shares from a family of funds dependent upon the exchange policies involved.

The different types of fees associated with mutual funds include sales charges, purchase, deferred sales charges, redemption, exchange, account, management, distribution, and operating expense fees. A front-end load or sales charge at the time a share is purchased is normally based upon a percentage. Account fees when investing in mutual funds usually include an account maintenance charge based upon a specific dollar amount. Exchange fees are only charged when a shareholder exchanges shares. Operating fees are usually based upon marketing, administrative, compensation to brokers, accounting, legal, and investor inquiries. Frequent trading, exchanging, buying and selling of shares can cause fees to increase. This helps to encourage investors to become long-term shareholders.

Loaded mutual funds are shares that carry a sales load. This means that along with other fees the investor has to pay a fee that consist of a commission paid to a broker. Front-end load means that the shareholder pays the sales fee up front. Back-end load is when the shareholder pays the sales fee when selling the shares. A constant load share is where the shareholder pays the sales fee every year and when the shares are sold. The best no load mutual funds are ones that have no sales fees at all. Time and research may pay off for any individual who wants to minimize the fees and costs associated with being a shareholder.

Income tax must be paid each year on any dividends or interest an investor receives from owned shares. A shareholder report must be provided to the investor each year. A shareholder report will provide the shareholder with updated financial information. This information can help an individual determine whether to hold the shares or sell them. The best no load mutual funds are those that are with companies who have had stable returns over several years and low fees. However, past performance is not always an indicator of future returns. However, if a company has been stable over the last several years then that can be a strong indicator that the company will have a stable future as well.