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Each business that manages a mutual fund charges an annual charge – usually 0.5% to two.5% of assets – also as particular other costs.

Additionally, some funds slap you having a sales charge more than and above these charges. These funds are known as "load funds." (Funds that don't impose sales charges are recognized as "no-loads.") These sales charges are either a reduce of new cash you place in to the fund, or perhaps a reduce of withdrawals you make in the fund.

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