Final answer:
The type of mutual fund that is promoted without a sales charge is the no-load mutual fund. They offer a cost-saving advantage to investors by not charging any commission on buying or selling shares, unlike load mutual funds. Therefore correct option is B
Step-by-step explanation:
The question is asking about a type of mutual fund that does not involve a sales charge and is promoted directly by the mutual fund company.
The correct answer is b. no-load mutual funds. No-load mutual funds are investment options that do not charge any type of sales commission or load. Unlike their load counterparts, they are strictly promoted by the mutual fund company without an additional charge when shares are bought or sold. This can be appealing to investors who are looking to save on costs that can reduce their overall investment returns.
On the other hand, open-end mutual funds refer to mutual funds that issue new shares as investors buy in and redeem shares when investors sell out, with the share price being the net asset value of the fund's holdings. Closed-end funds operate differently, with a fixed number of shares traded on stock exchanges. Load mutual funds include a sales charge or commission.