Choose wisely. There is only one correct answer to each question.
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1.
When you buy a load fund through an advisor, where does the load that you pay go?
To your advisor. Loads are commissions that are paid to advisors. Fund managers receive a portion of the fund's management fee.
2.
No-transaction fee networks charge _______.
Fund companies for being part of the network. There are no up-front costs with a no-transaction fee network. The networks charge funds for being included, and funds very often pass along these charges to all shareholders (whether or not they invest via a supermarket) in their expense ratios.
3.
Buying several mutual funds from one fund family limits your paperwork (account statements, tax statements, etc.)
True. There is more consolidation of paperwork when you stick with one fund family.
4.
With no-transaction fee networks, a mutual fund investor pays for the service _______.
Indirectly. Since these networks charge mutual funds to participate in them, the funds pass their cost along to investors through the expense ratio.
5.
Buying mutual funds from a single, large fund family will always provide you a diverse range of offerings to choose from.
False. Some families, despite being large, specialize in a narrow range of funds.
