A loaded fund charges a commission or fee. A no-load fund means you have bought the fund on your own.

There is certainly enough information available to support the choice of buying a no-load fund. However, if searching for the right fund is taking hours out of your potential income-earning time, you may be better off paying a commission with a load fund and using your time in other ways.

As is the case with everything these days, you have more than two choices. While no-loads have gained an edge on loaded funds, many companies have started offering loaded no-loads. Basically, this means you will be paying a fee somewhere down the line for the privilege of not paying a fee. Whether the costs are for some types of special benefits, a personal finance report, or some other accompanying service, the bottom line is that loaded no-loads are not commission-free funds. There are numerous ways that companies have found to slip fees and payments into their fund business, So read the prospectus carefully. If hidden costs start popping up, you might be better off looking elsewhere. In short, no-loads by any other name are essentially loaded funds. It's to your advantage as a new investor to stick with the basics, either loads or no-loads.