No-load Fund Law and Legal Definition

No-load fund is a mutual fund that does not charge shareholders a sales charge or commission. However, it may charge fees to cover operating costs such as distribution fees. Some investors prefer no-load funds since the total amount of their investment is used to purchase shares with little or no deduction.

No- load fund is differed from a load fund, since the load fund charges an up-front commission. Investors buy shares in no-load funds directly from the fund companies, rather than through a broker, as is done in load funds.

The listing of the price of a noload fund in a newspaper is accompanied with the designation NL. The net asset value, market price, and offer prices of a no-load fund are exactly the same, since there is no sales charge.