Quote:
Originally Posted by Demonpenz
Well there you go A load fund is a mutual fund that comes with a sales charge or commission. The fund investor pays the load, which goes to compensate a sales intermediary, such as a broker, financial planner or investment advisor, for his time and expertise in selecting an appropriate fund for the investor. Learned something new everyday
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Quote:
Originally Posted by Demonpenz
CAP INC BUL A (CAIBX)
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I myself don't like load funds. Others may disagree. I just think there are so many options out there that they aren't needed in most portfolios. A similar scenario to this is something like Costco. You pay a yearly membership to shop there. Some people think that is total shit, and I kind of agree. However, I do have a membership there. I will, however, never pay to shop anywhere else. Costco is my "load fund" and the only reason I pay to shop at Costco is because the yearly savings I get exceed the amount of the membership price. If I could get their prices/goods, somewhere else for free, I would do it. If Safeway down the street asked me to pay up front to shop there for groceries, I'd tell them to get bent.
That fund has a high 5.75 load fee, an "ok" expense ratio of .61% and 10 year gain of 4.15%. That pretty terrible gains given the fact you're paying up front just to put money there.
You could simply park money in a target date fund with Vanguard (this fund changes your allocation as you age), pay 0 for a load fee, with an expense ratio of .16% and a 10 year gain of 5.71%. All of this is better than the fund you mentioned and simply requires hands off investing until you retire.
We have so much research at our fingers today that even an average investor, like myself, doesn't require the need of an adviser at this point in life. If later, when my assets have grown and I'm more worried about retirement (less than 5 years out), I may pay for guidance. At a younger age, paying for "guidance" is simply stunting your portfolio growth by tens of thousands of dollar....and this is not an exaggeration as far as dollar amount goes.