No Transaction Fee Mutual Fund

Automatic Bill Payment Definition

What is a mutual fund with no transaction fees

A mutual fund with no transaction costs is a mutual fund with no related transaction costs. Mutual funds with no transaction fees are generally purchased directly from the mutual fund company or through discount brokerage platforms. No transaction fee UCI is advantageous for the investor because it allows him to buy the UCI without incurring sales charges on the transaction. No transaction fee UCI can also be called an NTF OPC or a no-load UCI.


An introduction to mutual funds

BREAKDOWN No mutual funds for transaction costs

No mutual fund is available to investors through several different channels. They can be purchased directly from a mutual fund company, purchased through a discount brokerage, or traded through a distributor.

Transaction costs are the acquisition costs associated with the purchase or sale of a mutual fund. Transaction fees and scales are determined by the mutual fund manager and detailed in the fund prospectus.

Transaction fees can be structured in different ways. The transaction costs of a mutual fund generally depend on the channel for which it is purchased. However, some funds can be structured without any transaction fees through any distribution channel.

Select funds

No-transaction structured funds are the purest form of no-transaction mutual funds. These funds do not require sales charges through any distribution channel. They are often on a short list of NTF mutual fund deals marketed by brokerage firms. The T. Rowe Price Equity Income Fund (PRFDX) is one example. This fund can be purchased from T. Rowe Price or from various intermediaries without sales charges. It is marketed by Schwab on their OneSource Select list. Many discount brokerages offer investors short lists of NTF mutual funds.

Transactions with mutual fund companies

In some cases, an investor can purchase a mutual fund with no transaction fees through the mutual fund company itself. If an investor chooses to purchase mutual funds through the mutual fund company, he should create an account with the mutual fund company to facilitate transactions. Mutual funds can be bought and sold through a mutual fund company, often without transaction fees.

Discount brokers

Discount brokers can also offer certain mutual funds with no transaction fees through their discount brokerage platforms. Buying mutual funds through a discount broker can often save investors considerable capital.

The ClearBridge Aggressive Growth Fund is an example. The Fund’s prospectus describes its sales charge schedule for the purchase of shares through an intermediary. The maximum subscription fee on the investor share class is 5.75%. The fund company offers breakpoints at different levels for discounts. Investors also have a few options to buy the fund without transaction fees. Discount brokerages like Charles Schwab allow you to invest in the fund through their free discount brokerage platform with a minimum investment of $ 100. The Fund is also associated with Legg Mason which allows investors to buy it without transaction fees via a Legg Mason account.

NTF mutual fund options

Overall, investors have a wide variety of options for mutual funds with no transaction fees. By understanding their transaction options and performing extensive due diligence on transaction costs, investors can potentially save significant amounts of capital.

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