Multiple choice

A no-load fund is one in which

  1. the entry load is not charged

  2. the exit load is not charged

  3. the entry load as well as exit load is not charged

  4. the initial issue expenses are not charged to the investor
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A no-load mutual fund does not charge any sales commission or load to investors when buying or selling fund units. The fund house absorbs the initial issue expenses and other costs associated with creating and managing the fund rather than passing them on to investors through entry or exit loads.

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