[net.invest] Load vs. no load funds

johnl (12/08/82)

Load funds generally do no better than no-load funds.  There are a few
notable winners in each category (Templeton Growth Fund is a famous
long-term success and is a load fund) but they each have to do with the
specific fund's management.

As far as I can tell, the main reason that people buy load funds is that
the load is used to pay salesmen (excuse me, I mean stock brokers) who
actively sell them.  No-load funds tend to be promoted by newpaper and
magazine ads backed up by 800 numbers.  Draw your own conclusions.

Cynically,

John Levine, decvax!yale-co!jrl, ucbvax!cbosgd!ima!johnl, Levine@YALE (arpa).


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