Finance, Forex and Investments

What is the best family of no-load mutual funds?

I currently pay over 5% in load fees with American Funds. What are the best performing no-load mutual funds I should be looking to switch to? Also, will my financial adviser at Baird tell me to take a hike if I suggest the switch?

Public Comments

1. T. Rowe Price. Definitely avoid load funds.
2. Here is the skinny. #1 I doubt that you are paying 5% for loaded fees at american funds. That very well might be the load (upfront-commission charge) to intially get into the fund, but the management fees are amoung the lowest in the industry. The benefit of American funds or load companies, is that they will provide you with invesment advise. No load companies will not or will limit the advice they provide. #2 If your Baird rep is putting you into American funds, then why not just go directly to them and open an account? Otherwise, you could be charged a monthly fee for your baird account on top of the management fees with amercan funds. #3 I would recommend Vanguard as a no load company. Strong management, low management fees and great selections. Just make sure that you are not duplicating your investments. Like AMCAP Fund, Europacific Growth fund and The Growth Fund of America. Your not helping with diversification or asset allocation at all. In addition, if this is in a taxable account, make sure you are not reinvesting the dividends and cap gain. If you reinvest them you are compounding taxes, which is the worst thing in the world to do. Always, I mean always opt for flat growth and flat tax over compounded growth and compounded tax, in a taxable account. Let me know if you have any other questions.
3. Vanguard, Fidelity, and TRowe Price are the best of the no load fund families (in my opinion). More than likely your rep will not be interested in helping you select funds with the 3 families I mentioned. The loads are how he gets paid. If you do invest with these, you will have to largely be your own financial advisor. Either learn about investing, or stick with American & your advisor.
4. In my opinion, T. Rowe Price and Vanguard are the best "full service" fund families.