Listen to a Business English Dialogue About No load fund
Johnny: Hi Emma, have you heard about no-load funds in finance?
Emma: Hi Johnny, yes, no-load funds are mutual funds that do not charge a sales commission or load fee when buying or selling shares.
Johnny: That’s right. Investors can buy and sell shares of no-load funds directly from the fund company without incurring any additional costs.
Emma: Why would someone choose to invest in a no-load fund?
Johnny: Someone might choose a no-load fund because they want to avoid paying sales commissions and prefer to invest directly in the fund without involving a financial advisor.
Emma: How do no-load funds typically generate revenue?
Johnny: No-load funds generate revenue through management fees and other operating expenses, which are typically lower compared to load funds since there are no sales commissions involved.
Emma: Are there different types of no-load funds?
Johnny: Yes, there are various types of no-load funds, including equity funds, bond funds, and money market funds, each with its own investment objectives and strategies.
Emma: What are some potential benefits of investing in no-load funds?
Johnny: Some benefits include lower costs, greater transparency, and the ability to invest directly without relying on a financial intermediary.
Emma: Thank you for explaining, Johnny. No-load funds seem like a convenient and cost-effective option for investors.