Buying Shares

Funds are often described as either being "no-load" or "load" funds, depending on whether or not they charge a sales commission.

No-load funds
Many funds are no-load funds that charge no (or a very low) sales fee or commission. Financial companies typically advertise no-load funds directly to investors in places like newspapers and magazines. Typically, when you buy a no-load fund, you make your purchase directly from the mutual fund company, rather than through a brokerage firm or a bank.
Load funds
These funds charge a sales fee or commission for purchases. Some funds charge the fee when you buy shares; others charge when you sell them. Brokerage firms and banks often sell load funds, and will help process any paperwork on your behalf.

Other fees and expenses

As the name implies, a no-load fund does not charge any type of sales load. But, not every type of shareholder fee is a "sales load." A no-load fund may charge fees that are not sales loads, such as purchase fees, redemption fees, exchange fees, and account fees. No-load funds will also have operating expenses. Be sure to review carefully the fee tables of any funds you're considering.

AARP Financial Inc. does not provide tax advice. Please consult a tax advisor for information pertaining to your particular situation.

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, or legal, tax or investment advice, or a legal opinion. Individuals should contact their own professional tax or investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action plan based on this information.

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