That Load Fund Might Be Worth a Second Look
A strict division of the fund world into 'load vs. no-load' no longer applies.
The article was published in the October 2018 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website.
Most investors understand the importance of keeping costs down. For this reason, load funds--those that charge a sales fee, typically an initial charge of 5.75% for the A shares of stock funds--acquired quite a stigma among do-it-yourself investors. Most simply wrote these funds off. That’s why the Morningstar 500, found in our publication Morningstar FundInvestor, aimed at individual investors, is overwhelmingly composed of funds without sales charges.
Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.