Q. What is load vs. no-load mutual fund?

A. Typically a load mutual fund charges an up-front sales charge and is sold through brokers and agents. A no-load mutual fund has no up-front sales charge and markets its products directly to the public, unless offered by a fee-based planner. Both types have ongoing annual operating expenses.

Q. What is asset or fee-based management?

A. An approach to long-term investing without the worry of transaction and commission costs. Your account is charged a percentage of your total assets, generally not exceeding 2.5% annually. You and your advisor are on the same side of the table in ongoing investment planning and asset allocation.

Q. What is asset allocation?

A. Assets or investments are categorized by classes or types. Stocks, bonds, and certificates of deposit are some examples of asset classes. Your portfolio is then diversified among these asset classes to suit your individual needs and to help the varying risks within the investments chosen.

Q. What is diversification?

A. To allocate your investment dollars to individual securities or mutual funds. Choosing securities and different mutual fund managers with similar financial goals and investment techniques. Or investing in bonds with varying credit quality and staggered lengths of maturity.

Q. How do I get started investing?

A. Many individuals start with a few thousand dollars. Most people can research quality mutual fund companies online and start investing on their own. You may obtain all the necessary prospectuses and needed information for your individual goals. If your situation involves a more detailed approach then you will want to find an investment advisor that you can trust. You can find advisors listed in your communities Chamber of Commerce, local yellow pages or you can ask an associate or friend whom they use.