Suppose you consider investing $10,000 in a load fund from which a fee of 3% is deducted and you expect the fund to earn 12% over the next year.Alternatively,you could invest in a no load fund which is expected to earn 10% and which takes a 0 percent redemption fee.Which is better and by how much?

Question

Quizplus · Accepted Answer

Lad Fund: $\quad \$ 10,000 ( 1.0 ] - 0.03 ) ( 1.12 ) = \$ 10864$
Na-Laad Fund: \$10,000 (1.10) $= \$ 1000$ 
The difference is $11000 - $10864 = $136
No-Load fund is better.

Suppose You Consider Investing $10,000 in a Load Fund from Which