Skip Navigation LinksHome > Free Site > Avoid Rip-Offs > Poor products

Poor Products: Avoid Loaded Mutual Funds

Avoid Those Who Sell Them as Well

Imagine ordering food at a restaurant only to see the waiter eat some of your food as it is being served. This is basically what happens when you buy shares of front-end sales-charge-loaded mutual funds. If you invest $10,000 in a fund with a 5% sales charge, for example, on day one your account value will be down to $9,500.

Many of the most popular funds have such sales loads. In fact, most became famous because the dollars siphoned from investors provide incentive for salespeople to sell them and revenues to the mutual fund distributor to advertise them. The load is not some access fee for a superior fund - it is merely a sales commission paid to the person and firm that sold it to you.

How Can Help

For every fund that charges a sales load, there are no-load (sales-charge-free) alternatives with the same objective, same investment style, and roughly the same portfolio. can help you find these alternatives. Moreover, can show you how much more you would be expected to earn and accumulate by using no-loads instead of loaded funds. You do not need, or even want, a salesperson to steer your assets. provides guidance to help you make your fund investing commission free.