Load funds have gotten the short end of the stick in their coverage in media over the last decade or so - mainly because of the extra charge associated with the purchase or sale of shares of these funds. Moreover, studies have indicated that there is no performance benefit by going with load funds over no-load funds, and when accounting for the extra fees, the net advantage seems to lie with the no-load funds. And yet, load funds continue to do well, with several investors keeping their money with these funds. Do they know something that others don't?

Comparing mutual fund performances is a tricky subject at best, and comparing apples to apples is important. But in all such comparisons, management of the mutual fund is to be given a heavy weighting. And it is in this light that load funds should be compared with no-load funds. If you are being asked to pay an extra 3-5% in fees during purchase or sale of the fund, you must be ask yourself - "For whom am I paying this extra fees?" . For example, if you are paying an extra fee for getting Bill Gross to be your bond fund manager, you will probably more than make up your fee over the next few years. On the other hand, betting on management of unproven abilities is a greater gamble - and should not command a premium.

The second factor in choosing load vs. no-load funds is the length of time of your investment. A long-term investment will allow your fees for a load fund to be spread over time, and essentially make it a very small part of your overall portfolio. The cost is real, but its effect can be tempered over time - especially if you get a top notch manager for the premium.

There is also a "phase of life" issue with investing in a load fund. Very early in your career, when investment money is in limited supply, you are better off in either individual stocks or no-load funds. But as your investment pot builds up, it is worth looking for some high quality managers and invest for the long term with them.

In other words, with a large portfolio under your management, it is best to look for the best management and best long term results for your money, irrespective of whether you invest in load or no-load fund.