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Investing In No Load Bond Funds

March 06, 2012 | Comments: 0 | Views: 166

No Load Bond Funds

There has been no evidence in the market to suggest that no load bond funds perform worse than those funds that do come with load fees. That being said, it makes perfect sense for you to save yourself the extra money by investing in no load bond funds. The companies offering these funds will all compete in different ways, and it is up to you to decide who to go to based on that. The companies that compete by offering less expensive fees will be the direction in which you want to look.

Buying Bond Mutual Funds

The investment world is a business for both the investor and the company the investor is working through. But since you are trying to raise money for yourself, rather than padding the pocket of a company, you should make decisions that will keep your best interests at the forefront. For instance, when buying no load bond funds, you must decide what kind of bond maturity and investment quality you are after. You can pick multiple bond mutual funds to further increase your diversification, but be sure to select ones from reputable companies, and to ensure that they have the lower fees.

Say No To Load Fees

If you are working with a counselor or advisor who suggests that you skip no load bond funds and go for something with a high fee or front-end load, don't be afraid to say no. No analysis of the market has proved yet that purchasing a fund with a fee will bring you more profit later. The higher your load expenses, the less your total return will be, so for all you know, you could just be throwing your money away. All a front-end load means is that you are paying your advisor or broker to sell you your investment. To avoid this fee, you can go straight to the source and buy your bonds using the information found on any fund family's website.

Finding A Financial Advisor

If you find that you need a financial advisor, beware of sales loads. Sales loads mean very high fees. Your ideal advisor will be paid on at an hourly or fixed rate, and there will be no talk of taking payments through the back door or under the table. Also take caution of an advisor that recommends funds with expense ratios that are too high, as that implies they have either not properly done their research, or are more concerned with making themselves money rather than helping you. In either case, you will want to find an advisor who is willing to give you their all in order to make your investment experience the best one possible.

Connor Swinney is the owner of the What Are Mutual Funds website. He created the website to be used as a resource for people who are looking for more information on Investing In Mutual Funds or that would like to know how they can create a successful investment strategy.

Source: EzineArticles
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