If you’re not careful, it’s easy to get hurt by the no-load label. For example getting a credit card with a label that says “0% introductory interest rate” sounds attractive, right? But if in the fine print there is a provision for the rate to jump to 19%, that card could easily cost you a lot of money if you don’t watch the situation closely.
If a fund is advertised as a no-load fund, an educated investor might see that as a warning sign to be very cautious. They would carefully check the fine print for a myriad of other fees such as purchase fees, redemption fees, exchange fees, and account fees. None of these fees fall under the definition of a sales load, so the fund is legally correct in advertising they are a 0% no-load fund. Trust me, these financial institutions will not give you anything for free. They know how to get your money from you.
Please download a free copy of my book 401(k)aos at www.401kaos.com to learn more about the high fee nature of mutual funds.