Which of the following must be true for a fund to be called a "no load" fund?
I. The fund can have no front-end load.
II. The fund can have no contingent deferred sales charge.
III. The fund can charge no 12b-1 fees.
IV. The fund cannot charge investors an exchange fee.

Question

Quizplus · Accepted Answer

Only Statements I and II must be true for a fund to be called a "no load" fund. The fund can have no front-end load, and it can have no contingent deferred sales charge. It can, however, charge 12b-1 fees, as long as the 12b-1 fees do not exceed 0.25% of the fund's average net assets, and it can charge investors an exchange fee when they elect to switch their monies from one fund to another.

Which of the Following Must Be True for a Fund