More recently, no-load funds have proliferated in the marketplace, charging investors no commission at all on both purchases and sales.
All funds are required by law to distribute any capital gains they earn to shareholders, and in some situations even a fund that is down in value can make a taxable capital gains distribution to shareholders.
You will receive a Form 1099 at the end of the year from your fund company listing any capital gains distributions.
B shares typically charge a fee on sales that declines depending on the time you have owned the fund.
Sales charges in the first year after purchasing the fund are usually 5 percent, declining to zero after six or more years.
Mutual funds are popular with young couples because they offer diversified portfolios run by professional investors with a minimal initial investment.