Load fees charged on mutual funds help insure that the fund is well managed and that the investor's yields will be greater than those on no-load funds.

Question

Quizplus · Accepted Answer

Load fees charged on mutual funds do not necessarily guarantee better management or higher yields. In fact, studies have shown that actively managed funds with high fees tend to underperform passive index funds with low fees in the long term. It is possible for some load funds to perform well, but investors should carefully evaluate the fees and performance of any mutual fund before investing.

Load Fees Charged on Mutual Funds Help Insure That the Fund