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That Load Fund Might Be Worth a Second Look

A strict division of the fund world into 'load vs. no-load' no longer applies.

Gregg Wolper
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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.

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