What is back-end loaded?

A back-end load, also known as a contingent deferred sales charge, means the fee is charged when an investor redeems the mutual fund. The fee usually starts at 5% for investors who redeem shares within a year and declines by a percentage point each year after until the fee is eliminated.

Which is better front-end load or back-end load?

With rear-loaded shares, the full amount of your investment goes to work, but you can be charged a redemption fee if you sell shares too quickly. At first glance, the back-end load looks like the better deal, but you may be much better off paying the load up front.

What are the advantages of a back-end load fund?

Benefits of Back-End Loads Back-end loads discourage overtrading and unnecessary early withdrawals. Unlike front-end loads, investors can often avoid back-end load fees by holding the fund for five to ten years. Class B shares often convert to Class A shares with lower expense ratios after six to eight years.

Are loaded mutual funds worth it?

The load itself really isn’t bad, but paying the load is bad. Mutual fund companies make money from ongoing management expenses, whether it’s a no-load or load fund. While some things are worth paying more for, loads are completely unnecessary when it comes to buying a mutual fund.

How does a no-load fund make money?

Mutual funds do not rely on loads, or sales charges, for financing. Loads are paid out to financial intermediaries, such as investment advisers or brokers, to compensate them for their services. The fund manager receives a small fee based on the fund’s growth. In other words, he makes money when the fund makes money.

What is the difference between a load fund and a no-load fund?

Load funds are mutual funds that charge a sales fee or commission. No-load funds usually do not charge any sales fee or commission, as long as you keep your money invested for a specified period, often five years.

Do no-load funds have fees?

No-load funds usually do not charge any sales fee or commission, as long as you keep your money invested for a specified period, often five years.

Do no-load funds have 12b-1 fees?

What Are No-Load Mutual Funds? Some funds can charge a 12b-1 fee and still call themselves no-load funds. There are many no-load funds available that don’t charge 12b-1 fees when purchased directly from a mutual fund company. They are often referred to as true no-load mutual funds.

What is a disadvantage of a load fund?

Disadvantages. The main disadvantage of a load fund is the attached charges and commissions. These charges can be substantial, depending on the size and type of investment, and other factors. The costs diminish your investing power as they are deducted from your investment funds.

Who gets the load on a mutual fund?

A load fund is a mutual fund that comes with a sales charge or commission. The fund investor pays the load, which goes to compensate a sales intermediary, such as a broker, financial planner, or investment advisor, for his time and expertise in selecting an appropriate fund for the investor.

What is a disadvantage of buying a no-load fund?

The main disadvantage of a no-load fund is the lack of professional advice and guidance.

What is a 1% fee?

12b-1 fees are paid to the salespeople who distribute mutual funds and are paid from the fund’s assets.

Can a projector be used as a back projection screen?

Although it varies from one projector manufacturer to another. Typically you choose front or rear projection and then desk or ceiling mounting and this will correctly alter the image for display on your screen based on your setup. For a video of how to properly flip the image in your projector for a back projection screen application click here.

What’s the difference between front and back projection?

Projection screens for years have commonly been known as front projection or standard projection, however over the last 10 plus years back projection screens have actually become a substantial part of the projection screen market and are more common place in today’s technology display uses.

How does a rear projection screen screen work?

Flips the image around so that the picture is displayed appropriately and not reversed. The two rear projection settings below will adjust additional functionality to make setting up for rear projection that much easier.

Which is the best star projector on the market?

Here’s a quick reference chart of what we think are the best star and galaxy projectors on the market today. – Alexa and Google enabled. – Great for adults & kids. – Great for adults & kids. – Works on any white surface. – Projects up to 90ft away. – Indoor and outdoor use. – start projector and night lamp. In more detail..