109k views
2 votes
No-load funds' expense ratio is _______ than the sales load funds' expense ratio:...

A) Higher
B) Lower
C) The same

User CMedina
by
8.2k points

1 Answer

6 votes

Final answer:

No-load funds' expense ratio is lower than the sales load funds' expense ratio.

Step-by-step explanation:

The answer to your question is B) Lower. No-load funds do not charge a sales load or commission fee when buying or selling shares.

As a result, they tend to have lower expense ratios compared to sales load funds.

The expense ratio represents the annual operating costs of a mutual fund, including management fees, administrative expenses, and other miscellaneous charges. So, in general, no-load funds have lower expense ratios.

User Jerielle
by
8.2k points

No related questions found