Are Load Funds Worth it?

Load funds mean you have to pay a fee in order to invest in that particular mutual fund. Is it really worth it to do this when other funds don't charge a fee?

Sometimes you could be investing in a load mutual fund that claims they can earn you an above average return. Maybe the return of a no load fund for a year is 10 percent and the return of the load fund is 12 percent. If they charge a 2 percent fee, you end up with the same 10 percent. If they charge more than 2 percent, you end up with less.

In this case, investing in no load funds is a smarter choice. No load funds mean you aren't paying anything. You get what you make. You don't have to make sure you make an above average return because even the average return is what you get.

Ultimately, it's up to you. If you can find a fund that is consistently earning you more money with a minimal fee, then go for it. If you can't, stick with no load mutual funds.