Newbie question re load funds

[Gardening Grandma]

I lurk here, but this is my first post. Please do be gentle with me. My question is concerning load funds.
If you already have purchased a load fund, and you decide to purchase more, are you still charged the load fee for the additional shares? I know that reinvested dividends don't incur the fee, but am wondering about additional purchases.....

I do understand why it would have been better to avoid the front load funds in the first place, but it's too late for that now....

[ModE98]

Am not a fund person, and am sure you will receive several responces in next 24-48 hours. Agree, front-load mutual funds are not the "best" way to invest... I sold them for nearly 10 years, but that was back in the 60's & 70's and the front load was applied to each new purchase. If you were lucky enough to pick one of the few really good, consistant producers, it may work out just fine in spite of the load.
Welcome to the board, we are here to help anyone with good questions on investing, as well as participate in the exchange of ideas, methods, etc.

[Gardening Grandma]

Mar 8, 2011 21:27:07 GMT -5 @franktheimpaler said:

Here we go shall we?
On your initial purchase if the perosn you were dealing with was any good they would have offered you an LOI (letter of intent) which could have offered you a discount based on purchases you would make over the next 13 months.

That being said after the 13 months we move to the ROA(rights of accumulation)this is an automatic right you have to buy more shares (and you are correct no fees or commissions on dividends)on future purchases.

If you have a lump sum you can dial it in...in advance...but the MF company is obligated to give you the lowest price based on cumulative purchases.

Now please keep in mind there are never any commissions over 1 million dollars

I do not agree that it was a mistake to purchase the load fund in fact it is the cheapest way to go long in a mutual fund investment over 10 years. And the SEC agrees with me

Tell us the fund complex...and I'll tell you if it was a mistake!

Frank.
It's been a few years, so I'll need to dig back into the paperwork and take a look.
The fund in question is CWGIX.

A bit more info: Our nest egg (DH's IRA, my IRA and a joint taxable account) is currently in 9 MF's. Most are "balanced", but 5 of the funds are more bonds than equities (we have a moderate to low risk tolerance as we are in our 60's and retired). I calculated our current asset allocation as 47% equities, 28% bonds, 22% cash and 2% as other (assuming that I did the calculations correctly - I am very much in a learning curve here). I am concerned that we are being too conservative having 22% earning essentially nothing (less than .25 interest) and thinking perhaps we need to be a bit more aggressive. Most of our retirement income is from pensions, SS and rental income.
So I looked at the MF's that are more equities than bonds. Those are: (besides CWGIX) CWGFX, AMECX and IFAFX. We have 11% currently in CWGFX and 8% in CWGIX.
Should I list which ones are in which account? The largest amount of cash is sitting in DH's IRA.
When I asked if we had too much cash, the advisor said "probably" and suggested looking at emerging markets. I asked if that would be appropriate considering our low risk tolerance and he said he'd recommend limiting it to 5%. One fund he suggested was EMGYX. .....
I'm wondering if I shouldn't just sit tight and learn more before making any decisions - DH is no help. He hates dealing with finances and if it were up to him, it would all be laddered in CD's.
Sorry this is so long, but thank you for any suggestions. (I'm reading Common Sense Mutual Funds by John C Bogle and have purchased the Dummies Guide to Mutual Funds - I know I've got a lot to learn...

[Gardening Grandma]

How much weight do you give to Morningstar ratings? They just changed AMECX and IFAFX from four stars to three....

[Gardening Grandma]

Frank,
I really appreciate your taking the time to respond to my questions.... One more.... How many funds do you consider too many? For someone who does not live and breathe mutual funds? We have nine right now. Five are weighted more towards bonds and 4 towards equities. Sometimes I wonder if we shouldn't just put it all into a target fund....

[Gardening Grandma]

My apologies as I know this has veered a tad off the Original Topic, Just wanted to answer you FRANK.

No apology needed. The original question has been answered and the thread has taken a very interesting direction. I'm still pondering the last several posts......

My own goals are two-fold. I want SOME income now, but I also want future growth.... Haven't figured out the sweet spot...

[ModE98]

If only one were disciplined enough to follow such sage advice.,
Some are, but I suspect the constant pressure (from brokerages, talking heads on TV, ads, etc.) to trade and speculate probably affects the majority far too often. The Siren's Song has led many a sailor onto the shoals, rather than into a safe harbor. Man the helm well and steer a steady and true course.
I listened to the Song and ruined my ship, and now it's in dry dock being refitted.