No load mutual funds do not charge a commission on the initial investment, making them preferred by investors who conduct their own research and wish to avoid such fees. They can still be part of a mutual fund family and are generally not preferred by most brokers, as brokers typically earn commissions from the sale of funds that do charge a load.

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No Load Mutual Funds

Question 107

Multiple Choice

No load mutual funds

A) are preferred by investors who do their own research.
B) charge a commission on the initial investment.
C) are not part of a mutual fund family.
D) are preferred by most brokers.

Correct Answer: