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From: ekrell@ucla-cs.UUCP
Newsgroups: net.invest
Subject: Re: A comment on "no-load" mutual funds
Message-ID: <9445@ucla-cs.ARPA>
Date: Thu, 27-Feb-86 01:39:53 EST
Article-I.D.: ucla-cs.9445
Posted: Thu Feb 27 01:39:53 1986
Date-Received: Sat, 1-Mar-86 03:08:39 EST
References: <1982@jhunix.UUCP>
Reply-To: ekrell@ucla-cs.UUCP (Eduardo Krell)
Organization: UCLA Computer Science Department
Lines: 13

Numerous studies have demonstrated that there is no correlation whatsoever
between a fund's performance and the amount, if any, of its load or sales
charge.

The 12b-1 "hidden loads" are becoming more popular these days. This is a
maximum annual percentage taken from the fund to cover sales and promotion
expenses. The annual fee ranges from 0.06% to 1.25%. Most of them are
less than 0.3%, which is really less than the existing range of variance
of management fees among different funds, so up to now, these hidden loads
are a minor consideration in choosing a fund.
--
    Eduardo Krell               UCLA Computer Science Department
    ekrell@ucla-locus.arpa      ..!{sdcrdcf,ihnp4,trwspp,ucbvax}!ucla-cs!ekrell