5 Top-Performing No-Load Mutual Funds Investors Will Love

Recent domestic and international tensions are expected to weigh on investor sentiment in near terms. In this context, no-load mutual funds are back in the spotlight. Investors always aim to make the best out of the total invested capital. So investing in mutual funds with strong returns is always the primary objective. However, investors also aim to reduce their expenses while buying or selling funds by focusing on no-load mutual funds.

Domestic and International Tensions Persist

Current tensions in global and domestic markets have made investors jittery. Recently, in his testimony to the Senate, U.S. Attorney General Jeff Sessions said that his meeting with Russians to hamper the 2016 U.S. Presidential election is nothing more than a ‘detestable lie.’ This in turn raised worries over President Trump’s ability to implement his future pro-growth policies, in case Sessions’ testimony lugged along any shocking revelation.

Also, overvaluation concerns in tech sector weighed on investor sentiment. Goldman Sachs (GS - Free Report) warned investors in a note that there are multiple potential unaccounted for dangers in the tech sector, which caused an industry-wide selloff recently.

In Britain, the inability of Prime Minister Theresa May’s Conservative party to secure a majority in the general election added to investors’ woes. Also, in its meeting last week, the European Central Bank (ECB) held interest rates at 0.0% and ruled out possibilities of additional rate cuts. Given such dissuading events, no-load funds could be a hit among investors.

Why Invest In No-Load Funds?

No-load funds are those that do not bear any sales or commission charge at the time of buying or selling funds. This generally happens when funds are traded directly through the investment company and not through some secondary entity. Sales load is normally divided into front end sales load and back end sales load.

Front End Sales Loads: These are fees that an investor must pay at the time of investment. Also, categorized as “Sales Charge (Load) on Purchases”, these are charges an investor pays while purchasing a fund. The front-end sales load is deducted from the actual invested amount, and the remaining portion is actually used to buy funds.

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