Two mutual funds are quoted as follows. Given these quotes, which one of the following is true?

Question

Two mutual funds are quoted as follows.  Given these quotes, which one of the following is true?

Quizplus · Accepted Answer

A fund is considered a no-load fund if it does not charge a sales load when shares are bought or sold. Fund A has a front-end load of 5.75%, so it is not a no-load fund. Fund B does not have a front-end load listed, so it is either a no-load fund or it may have a back-end load or other fees. However, since there is no information given about Fund B's load structure, the only safe conclusion is that Fund B is the only one that could potentially be a no-load fund. Therefore, the correct answer is C.

Two Mutual Funds Are Quoted as Follows