No-load mutual funds serve two very different types of investors, a new study shows. On the one hand, 37 percent of no-load mutual fund investors, who have invested for an average of 13 years or more years, consider themselves well-informed and are self-directed. On the other hand, 63 percent of no-load fund investors who have owned mutual funds for an average of seven years or less, say they have only basic or limited knowledge and welcome personal advice, the study shows.
The study, The Changing Dynamics of the No-Load Investor, was commissioned by the Mutual Fund Education Alliance of Kansas City, Mo. and conducted in April by Boston Research Group of Woburn, Mass. Two-hundred no-load fund investors were interviewed by telephone. The alliance is a trade association of 44 no-load fund families.