Mutual funds are considered to be one of the best investments one can get their hands on. They are very flexible and profitable. An excellent investment for people with limited knowledge, time or money.

For beginners, who may have a puzzled expression on their faces at the mention of mutual funds; Let me first familiarize you with what mutual funds are.

A mutual fund is a financial instrument that allows a group of investors to pool their money. There is a fund manager who takes care of the accumulated money and invests it in specific securities (stocks or bonds). Investing in mutual funds basically means buying shares of the mutual fund and becoming a shareholder.

Having read this, you may now have decided to buy a mutual fund. But you have over 10,000 mutual funds to choose from. So how do you make sure the one you’ve chosen is the right one?

For those new to investing, let me walk you through ‘loaded’ and ‘no-load’ mutual funds. ‘Load’ is basically a commission that has to be paid to the broker when you buy the fund, while ‘no load’ mutual funds are free of such commission problems as they are sold directly by the investment company.

It is best to consult an investment advisor before diving into this venture. These financial mentors will charge you a certain fee. They do not receive any commission from the companies. By getting paid by their clients, these advisors make sure you get the best out of any deal you make. Therefore, you are sure to get reliable advice from your counselor. And obviously, they will always advise you to go for ‘no load’ mutual funds. Why?

Well, it goes like this. ‘Load’ mutual funds are sold by brokers who are paid by companies. Right? So I don’t see any reason for them to care if you win or lose money. They are only interested in persuading you to buy funds often, so that they can enjoy the rewards of the companies. Also, ‘load’ mutual funds consist of upfront charges, late charges, or deferred charges. Quite loaded!

Any smart investor would certainly make sure that all of their investments pay off. Investors can choose the funds on their own, just like ‘no load’ mutual funds, as they are free of charge.

However, at the end of the day, the presence or absence of a broker has nothing to do with the success of your investment. Actually, what really matters is the advice he gets from his counselor. A well-planned decision and loyal advice on when to buy or sell are vital to ensuring a bright financial future. So keep your mind wide open and invest! Good luck!