No Load Funds

Trading and investing have been used synonymously for far too long, and it’s time to put a clear distinction between the two. Even investors themselves often don’t know the proper definitions of trading versus investing, and these are usually people who rarely make any money on the stock market. Before you can make a profit from trading, investing, and the market, you must understand that the fundamental difference between the two is your intention, i.e. what exactly are you looking to do with your capital?
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High risk stocks are called that for a reason – it is very risky investing in them! Yet there are a great number of people who invest in high risk stocks, because they are after making a profit fast – maybe over a couple of days. This is very risky indeed, as the chance of losing money on such transactions is huge, since it’s difficult to ensure returns that are profitable over a period as short as two days. Of course, if it was all doom and gloom, people wouldn’t do it; and there certainly have been times when stocks peaked over the short term. Unfortunately these occasions are rare.
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Whilst the temptation is to go as cheaply as possible, don’t just look at the figures. Many an investor has lost out because he or she opted to go for the cheapest option, and it turned out to be far from the best product to buy. With investment products, you, to a degree, should get what you pay for, but there are many cases in which expensive funds have performed badly, and cheap funds well. This relates to management fees, however, and not to loads, which can be a complete waste of money. For more on this distinction, read on..
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It is surprising how many mutual fund investors I come across who do not have a clear idea of the fees that they are being charged. Some even think that just because they are paying a relatively high fee, then they are in a “quality” fund that is most likely to make the best returns. This is the big myth of the mutual fund market. In fact, expense mutual funds have lagged behind their cheaper counterparts in the last few years in terms of overall performance.

In the fund market, however, unlike when choosing between a Kia or a BMW, price does not necessarily relate to quality. Investing in mutual funds with low fees can be a difficult endevour. Do the figures over, say, a decade, and if you have a decent sum invested then you will be paying out a shockingly large amount on fees.
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Retirement, the kids, the property ladder – most investment advice written on the Internet is for long term investing of 10 years or more. But what if you are not saving for your old age, your kids education or your next house? What if you just want to make a short term investment? Perhaps you’ve got hold of some unexpected cash and you want to put it somewhere until you work out what to do with it? In this is your case, then read on!
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