Which of the following statements is true regarding mutual fund load charges?
A)Load funds perform better than no-load funds.
B)Back-end load funds perform better than no-load funds.
C)Load funds perform more poorly than back-end load funds.
D)No-load funds perform just as well as load funds.
E)None of the above

Question

Quizplus · Accepted Answer

No-load funds perform just as well as load funds. Studies and financial analyses have shown that the presence or absence of load charges (front-end, back-end, or otherwise) does not inherently affect the performance of mutual funds. The performance is more closely related to the fund's management, investment strategy, and market conditions. Load charges are fees and do not contribute to the investment's value or performance.

Which of the Following Statements Is True Regarding Mutual Fund