Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10 5/3/83; site machaids.UUCP
Path: utzoo!linus!wivax!decvax!tektronix!uw-beaver!cornell!vax135!floyd!whuxlb!pyuxll!eisx!npoiv!npois!hogpc!houxm!hocda!machaids!as
From: as@machaids.UUCP
Newsgroups: net.invest
Subject: Re: Questions on mutual funds
Message-ID: <413@machaids.UUCP>
Date: Wed, 20-Jul-83 09:46:22 EDT
Article-I.D.: machaids.413
Posted: Wed Jul 20 09:46:22 1983
Date-Received: Thu, 21-Jul-83 20:08:54 EDT
References: <5168@cca.UUCP>
Organization: Bell Labs, Holmdel
Lines: 22


The No Load Fund Investor is a good book/quarterly newsletter.  If this is
your first experience with such funds, subscribe to both.  The book is the most
important.

This isn't a ripoff, like some other mail order junk.  I too am wary of such
ads.  No load funds aren't advertised because there is no sales charge (profit)
for anyone to do so.  Your broker will strongly push mutual funds, but he/she
gets a sales commission (load) of 8.5% (really over 9% since it's taken off
the top) on all shares sold.  He/she won't tell you about the no load funds,
on which there is no profit to be made for selling it.  ALL mutual funds
(load and no load) take 1/2 to 1% of the total value of the fund each year
in the form of management fees.  This seems fair to me, since it includes all
sales commissions and I have experts working for me deciding which stocks,
bonds (or whatever the fund is about) to buy.

There is no guarantee that a fund that had done well in the past will continue
to do so, but I'd rather use them than one that has bombed in the past.
Despite what brokers will try to tell you, there is NO advantage to loaded over
no load funds (except to them, the salesmen).

			Abe Shliferstein, Bell Labs, HO.