From: utzoo!decvax!harpo!seismo!hao!hplabs!hpda!sanders
Newsgroups: net.invest
Title: No-load mutual funds
Article-I.D.: hpda.360
Posted: Mon Feb 14 11:01:35 1983
Received: Thu Feb 17 05:28:40 1983


I have been looking into investing in a mutual fund group.  There are two
basic types of funds: load funds which you buy through a broker and pay a
sales fee (usually 8.5%) for, and no-load funds which you buy directly from
the fund and pay no sales charge for.  In looking into past performance, it
appears that no-load funds have done just as well as load funds on the average.
It appears obvious to me which of the two types I should invest in.  What
bothers me is that it is TOO obvious.  Why would anyone pay an 8.5% sales fee
when they don't have to?  Sure, the sales fee allows load funds to sell
themselves whereas the investor must take the initiative in searching for 
no-loads, but is that it?  Am I missing some obvious reason for avoiding 
no-loads?  I'll post summaries of responses if interest warrants it.

Thanks,
Al Sanders
HP Design Aids, Cupertino, CA
ucbvax!hpda!sanders