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If the current price of a mutual fund is lower then the Net Asset Value, is it a load fund?

If the current price of a mutual fund is lower then the Net Asset Value, is it a load fund?

No, this would mean it is a closed end mutual fund.

An open mutual fund is open to sell more shares to investors, the shares are sold or redeeemed at net asset value.

A closed fund , do not take new investments in it, nor do they redeem shares until a certain date written into the prospectus.

So the fund trades on the market (stock exchange) and sells based on Supply/demand principles.

A fund can trade at a discount to NAV or even at a premium to NAV

Ibeleive that when the purchase price is higher than net asset value you shoud run like crazy from the fund. Purchase prices in Load funds are always higher than net asset value, not lower. The other way around would represent, I think, a situation where you were buying an asset with built in appreciation in value that you could immediately turn around and sell at a profit, unlikely for any kind of equity investment.

Assets have nothing to do with the load. A mutual fund has a load if the management decides to charge one. That's the only stipulation

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