Zero-load
Encyclopedia
Zero-load refers to a mutual fund
that charges no commission
or sales charge. 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 . However, as an investor in a load fund has to pay out fees to buy in or out, a load fund must performer 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.
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
that charges no commission
Commission (remuneration)
The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold...
or sales charge. 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 . However, as an investor in a load fund has to pay out fees to buy in or out, a load fund must performer 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.