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An open end fund that does not assess a sales charege to investors is known as a no load mutual fund. These become popular years ago as the competition for mutual fund money grew.
Although some funds do not charge a sales charge, it does not automatically make them the right investment for everyone. Some funds that charge 4% to buy shares, may be earning 20% a year vs. a no load company earning only 8%.
The no sales fee should only be a factor in your decision to buy the mutual fund.
Most of these companies will charge a redemption fee when the fund is redeemed. Dividend payments and investment objectives could be the same as any other open or closed end company.
Copyright  2006 American Investment Training, Inc.
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