What is zero-load?

Zero-load, or no-load, refers to an investment fund that doesn’t impose any sales charges or commission fees for buying and selling units. That’s because instead of using a broker, shares are usually distributed directly by the investment company.

Where have you heard about zero-load?

Load is simply another name for a fee you’re charged when buying or selling certain types of fund. If you’re researching mutual fund trading information, look for the symbol NL, which is used to indicate that the fund is no-load.

What you need to know about zero-load.

According to research, there’s not much difference in the actual performance of zero-load funds compared with load funds, which do charge fees. However, a load fund obviously has to perform better for you to get the same overall outcome.

Mutual funds are required to disclose loads and other fees, and it’s important to note that zero-load doesn’t necessarily mean other fees aren’t charged by the fund. So when you’re comparing investments, make sure you evaluate all fees associated with them, not just the size of the load.

Find out more about zero-load.

Read our definition of load fund for details on the opposite to a no-load fund.