What is load vs. no-load mutual fund?
Typically a load mutual fund charges an up-front sales charge
and is sold through brokers and agents. A no-load mutual fund
has no up-front sales charge and markets its products directly
to the public, unless offered by a fee-based planner.
Both types have ongoing annual operating expenses.
What is asset or fee-based management?
An approach to long-term investing without the worry of
transaction and commission costs. Your account is charged a
percentage of your total assets, generally not exceeding 2.5%
annually. You and your advisor are on the same side of the
table in ongoing investment planning and asset allocation.
What is asset allocation?
Assets or investments are categorized by classes or types.
Stocks, bonds, and certificates of deposit are some
examples of asset classes. Your portfolio is then diversified
among these asset classes to suit your individual needs and to
help the varying risks within the investments chosen.
What is diversification?
To allocate your investment dollars to individual securities
or mutual funds. Choosing securities and different mutual fund
managers with similar financial goals and investment
techniques. Or investing in bonds with varying credit quality
and staggered lengths of maturity.
How do I get started investing?
Many individuals start with a few thousand dollars. Most
people can research quality mutual fund companies online and
start investing on their own. You may obtain all the necessary
prospectuses and needed information for your individual goals.
If your situation involves a more detailed approach then you
will want to find an investment advisor that you can trust.
You can find advisors listed in your communities Chamber of
Commerce, local yellow pages or you can ask an associate or
friend whom they use.