From: "Michael T Wing CPA" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Advantages of Loaded Funds?
Date: Tue, 6 Jan 2004 17:20:18 CST
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Jay  wrote:

> I am pretty sure that most people here favor no-load funds
> (for know reasons). But, since the loaded ones still exist
> (class A,B,C etc.) there has to be some advantages (apart from
> commissions to the Financial Advisors and party). Any insight?

There could be an advantage in that the load discourages rapid
turnover or trading of fund shares. Some of the ramifications of
this are:

1) The fund saves costs by way of less trading to raise cash to
payoff departing shareholders.

2) A "spendthrift" investor might be more inclined to stick with
the fund long term, so as not to "lose" the load, and thereby
might ultimately benefit.

Whether these benefits out weigh the costs when compared to
no-load funds is, of course, a matter of speculation, conjecture
and debate. I'll just say that I am willing to keep an open mind
on the issue, especially when the second item mentioned above
applies.

MTW