If an investor purchases a no-load fund, she or he:

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A no-load fund means that there is no commission or sales charge to purchase the fund. However, the fund could still have fees for marketing and distribution expenses, which are known as 12b-1 fees. Therefore, the investor could be subject to these fees even though there is no sales charge or commission. It is not accurate to say that the investor is never subject to a management fee because all funds have an expense ratio that covers management fees and other operating expenses. Finally, it is not necessarily true that no-loads generally pay better rates than load funds. The performance of a fund depends on many factors, including the management style and investment strategy used by the fund manager.

If an Investor Purchases a No-Load Fund, She or He