How to Purchase a No Load Mutual Fund

By Contributing Writer

  • Overview

    A no load mutual fund is one that does not charge a commission or sales fee for investing in the fund. The investor has more money to invest in the funds themselves, saving the price of a sales charge. Purchases of the fund can be made without having to use a broker or financial advisor once an account is set up with the mutual fund company.
    • Step 1

      Decide on a mutual fund company that offers no load mutual funds. Two examples are T. Rowe Price and Fidelity Investments (see Resources below).
    • Step 2

      Take a look at the funds available and choose one. Most companies have a website that lists each fund and gives you at least an overview of the fund's performance and makeup. Check out financial websites that rate funds and give information about their performance. Try Morningstar's website, listed in the Resources section below.
    • Step 3

      Contact the mutual fund company directly to set up your account. You may be able to set up the account online or through a call to the company. Give your personal information and details about the account setup. For example, you might wish to make a one-time purchase, or set up an automatic periodic purchase each month into the fund.
    • Step 4

      Pay for the purchase. Once you set up your account, you will have to have money available for the purchase. Most often, you'll need to mail a check to get the financing started. Once you have done that, future purchases can generally be made online or with a simple phone call.
    • Step 5

      Watch your investment grow. Since you have purchased a no load mutual fund, you won't be subject to any sales commissions for your purchase. You may have to pay fees, however, if you invest in certain types of accounts like an IRA account. Ask the company for any fees you may incur each year or quarter.
    • Skill: Moderately Easy
    • Tip: It is a good idea to speak to a financial advisor before making an investment in a mutual fund.
    • Warning:
    • In times of troubled financial markets, you may wish to consider a more secure method of investment, like a certificate of deposit (CD) insured by the FDIC. With an investment in a mutual fund, you risk losing part or all of your money if the market drops or the economy suffers (although when the economy rebounds, you will usually see the account go back up in value.)

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