Index funds are popular investments because they offer a cost-effective and efficient way to diversify your portfolio (or own a variety of securities — stocks, bonds, etc.), without having to make a large initial investment.
We offer no-load mutual funds because at Ally Wealth Management, we do not charge commissions to buy and sell securities. A no-load fund means there is no cost (other than a small ticket charge) to purchase or sell. No-load index funds are often much less expensive (usually a fraction of one percent) to own, as opposed to active (managed) mutual funds. This can create significant savings over a long period of ownership. There are many professional investors who agree with this strategy. Here are just a few:
“Most investors, both institutional and individual, will find the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.”
– Warren Buffett, 1996 Berkshire Hathaway Annual Report
“Most investors would be better off in an index fund.”
– Peter Lynch, famous stock picker, Barron’s, p. 15, April 2, 1990
“Most of the mutual fund investments I have are index funds, approximately 75%.”
– Charles R. Schwab, Author, Guide to Financial
“The deeper one delves, the worse things look for actively managed funds.”
– William Bernstein, The Intelligent Asset Allocator
Investing in No-Load Mutual Funds
Because they offer diversification with generally a small initial investment, no-load mutual funds can be suitable for most investors.
Your Investment Consultant at Ally Wealth Management has the tools to help you choose the right fund or basket of funds to meet your unique goals. Work closely with your Consultant to develop a portfolio that is suitable for your specific situation.
Active mutual funds can be very costly to purchase and own. Front load commissions come right out of your investment principal. Passive index funds offer investors an alternative. Instead of large commissions, we charge a flat fee (starting under one percent). Of course the cost to purchase or sell shares is only part of the investment equation. Choosing which indexes to own is at the center of what Ally Wealth Management does. You should carefully consider the investment objectives, risks, charges, and expenses of owning a mutual fund before making any purchase.