Front Load Mutual Funds
If your mutual fund takes a fee up front for each share purchased, then it is a front load fund. Many high cost mutual funds charge 3-5% up front to get into the fund. Really bad funds charge as high as 10% load up front.
In the long run, the load makes a huge difference in the total earnings you will get. There is no reason to purchase a loaded fund. Nowadays, there are lots and lots of no load funds that get the same returns as the loaded funds. Front load funds are typically sold by highly paid financial executives marketing to low income people. Our advice is to simply avoid any fund with a load.
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