Quote:
Originally Posted by retiredguy123
I don't think you will ever get a definitive answer to your questions. But, I think the advisor should get most or all of the sales load, because they made the sale. They should not get any of the internal fund management costs because they are not involved in the ongoing management of the assets within the fund. Should the advisor disclose this information to the client? No. The load is disclosed in the fund prospectus, and it should be obvious that it is a sales commission for whoever sells the fund. The advisor should make a general disclosure to the client that they do recommend some commission based products. I only buy no load funds and do not pay any AUM fees.
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I don’t pay loads or AUM fees either, retiredguy123. Also have a few individual dividend stocks that I tend to marry.
Thanks for your answer.
My next question is how could there possibly be an advantage to the investor in a load fund? I was looking at one that shows a 4.5% load. Well…….that’s sure a load.
With so many no-load funds available, is there ever a good reason for an investor to pay a load or do they just get slid into a portfolio because sometimes people don’t read the prospectus? What am I missing on this one?
Boomer