Mutual funds charge high sales loads because their potential returns are much higher than the returns for individual stocks.

Question

Quizplus · Accepted Answer

Mutual funds charge sales loads to cover the cost of marketing and selling the funds to investors. The potential returns of mutual funds are not necessarily higher than individual stocks, as both investments carry varying degrees of risk and potential returns. It is important for investors to consider the fees and past performance of any investment before making a decision.

Mutual Funds Charge High Sales Loads Because Their Potential Returns