Lesson plan
Zero-load
Zero-load refers to a mutual fund that charges no commission or sales charge. Instead of using a secondary party shares are generally distributed directly by the investment company. Research has shown that there is little difference in the performance of zero-load funds in comparison to load funds. However, as an investor in a load fund has to pay out fees to buy in or out, a load fund must perform better in order for the investor to get the same outcome. This means that in essence a zero-load fund starts the 'investment race' with a headstart.
Article summary
Zero-load refers to a mutual fund that charges no commission or sales charge. Instead of using a secondary party shares are generally distributed directly by the investment company. Research has shown that there is little difference in the performance of zero-load funds in comparison to load funds. However, as an investor in a load fund has to pay out fees to buy in or out, a load fund must perform better in order for the investor to get the same outcome. This means that in essence a zero-load fund starts the 'investment race' with a headstart.
Key claims
No claims recorded.
Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
No sources recorded.
Key claims and bibliography are generated from the same tracked claims and sources as the article page.