What types of fees are involved in mutual fund investing?

Many mutual funds are sold with a sales charge, known as a load, which can be payable either at the time of purchase or when shares are sold. This sales charge is in part used to compensate financial advisers for their work. Other funds have no up-front or back-end fee, but have ongoing expenses. All mutual funds charge annual expenses, which are paid by shareholders on a percentage of assets basis. For those investors who hold funds over the long-term, annual expenses may have a greater effect on the cost of investing in the fund than sales charges.
Frequently, mutual fund companies offer multiple share classes, each with a different fee structure, in order to provide shareholders with more flexibility. Your financial adviser can help you choose the type of fee structure most consistent with your individual needs.