If you buy a Mutual Fund at 30.00 and it has a Front OR Back Load on it,?

and you buy $10,000 in that mutual fund, how much commission will they charge after 3 months if you withdrawal the profits?

Generally speaking, most back end loaded mutual funds do not pay a sales charge on the appreciated portion of you shares, only on the original $10,000 purchase.

Most front-end funds will charge you a 5.75% sales charge on dollar amounts under either $25,000 or $50,000 (each company is a little different).

Just because you don't pay a sales charge when you buy back end loaded funds doesn't mean they are any cheaper. They usually have higher internal costs (approximately double the front-end loaded shares). If you do get charged a back end load, on most equity mutual funds it's 5 or 4%.

Remember, most open-ended, stock based mutual funds are considered long-term investments and really shouldn't be used for a 3 month time horizon.

If you do go with ETFs (or closed end, exchange traded funds), you will definitley pay a sales charge or commission when trying to take profits.

It depends on the mutual fund and mutual fund company. Most companies charge between 1-2% for front or back end loads. In addition to this charge you may end up paying an early termination fee if this mutual fund is in an annuity.

Bryan is approximately correct in his answer. Some funds have a 5.75% front end load. Some funds are no load which means they do not charge a load at all. And some indeed have a back end load. And most no load funds also have an early redemption fee the time period varying with the fund in question.

But assuming that you invest 10k in a no load fund that does not have an early redemption fee for a 3 month withdrawal you will receive the full net asset value of your investment.

If on the other hand you invest in a fund with a 5.75% front end load your 10k will purchase only $9425 worth of fund.

There is an additional class of funds called ETFs. These are traded like stocks. The only fees associated with purchasing these are your brokerage fees. You can buy today and sell later on in the same day (well not today, it is Saturday. The market is closed). Some of these funds sell at cosiderable discount to net assets, as much as 15% and some trade at premiums. Below is a link to data on all the available ETFs.

Hello,

I completely agree with wanting to invest your money. Afterall, what's the point of making money if you can't make more money with your money (got that?)? Anyway, I've tried all different investments from stocks and bonds to IRA's, 401k's, and real estate. I'm really a big fan of diversification.

However, the only investment I've really been happy with so far is real estate. Over the past 5 years, I've bought 3 different properties (all have tenants, and I'm making more than the mortgage payments on 2 properties).

The 3rd property I got was using Carleton Sheets no money down methodology (he's a GURU in real estate, and yes, his methods do work!). You can actually buy a property for absolutely nothing down (NO MONEY FROM YOUR OWN POCKET). I payed over $500 for his course 3 years ago, and I just saw it online for $9.95!!!! This is a steal at $9.95 (I'm actually going to buy it for my friends for Christmas). It was featured on TV, so I got the website from there.

Before you invest in anything, I highly suggest the Carleton sheets course. http://www.alllsite.info/real-estate.php