Fund Facts Navigating the world of mutual funds can be an interesting adventure. Indeed, for other than professionals (and probably for some of them), working one’s way through this forest of some 8,000 funds may be overwhelming. Even so, here is some assistance in understanding. Mutual funds have been around for decades. They become popular in the 1970s and 1980s. Fifty years ago, most funds were load funds. Load is another word for sales charge. Back then, it was not uncommon for load funds to have initial charges of 8% or so when making investments. So on Day One, your $100,000 investment was worth only $92,000. As time passed, investors became increasingly concerned about these sales charges. Then several things happened. The mutual fund companies created different classes of shares. Typically, Class A included the stated load when the initial investment was made. For investors who balked at that, they created Class B, which had no charge up front. The hitc
Investment and economic observations by N. Russell Wayne, CFP, MBA. Mr. Wayne is the president of Sound Asset Management, inc. and former Managing Editor of The Value Line Investment Survey.