Legal Definitions - no-load fund

A no-load fund is a type of mutual fund that does not charge any sales commission to investors. However, it may still charge fees to cover operating costs.

For example, if an investor buys shares in a no-load fund for $100, the entire $100 will be invested in the fund. In contrast, a load fund may charge a commission of 4 to 9%, meaning that only $91 to $96 of the $100 investment will actually be invested in the fund.

No-load funds are attractive to investors who want to avoid paying sales commissions and prefer to have their entire investment amount working for them.

Overall, no-load funds are a good option for investors who want to save money on fees and expenses while still investing in a diversified selection of securities.