What is a no-load fund and how do I make sure I'm buying one?

A no-load fund is a mutual fund that charges no sales commission to buy or sell — every dollar you invest goes straight to work, and you keep your whole balance when you exit. It still has an expense ratio (the annual operating fee), but it skips the front-end and back-end loads that loaded funds tack on to pay salespeople. The major low-cost index funds from Fidelity, Vanguard, and Schwab are no-load. To confirm a fund is no-load, check the prospectus or the fund's fee summary for "front-end load" and "deferred sales charge" — both should read 0.00% or "none." Buying directly through a discount brokerage rather than through a commissioned salesperson is the surest way to avoid loads entirely. Then compare the expense ratios, since that's the cost that remains.