3. Loads on the Fund

Some funds charge the sales load from the investors. Sales load is something which has to be paid to the brokers, but if end up paying that; then you will not be beneficent financially. This load fees can vary from 1 percent to 8 percent of your investment.

Paying sales load is like negative return on the investment and thus it only makes your loss. So always try to avenge from such loads, unless the load is justifiable.

The cost of owning fund is symbolized by the expense ratio which includes advisory fees, operating fees, distribution fees and other administration fees etc. So select a fund with a lower expense ratio.