Part 5. Other Factors to Consider
- Initial investment: This is the minimum investment threshold a fund may require.
- Loads: This is the commission that pays to the sales people of the mutual funds. It has no relationship with the fund’s performance/risk. Therefore, it is better to choose a no-load fund.
- Tax: Different mutual funds have different tax treatments and you definitely want to avoid such year end fund tax hit. It is important that you read all tax information before you invest in a fund, and make sure you allocate different tax-purpose mutual funds in the proper investment accounts to maximize your after-tax profit.