by KYW's Salil Gutt

The smartest way for investors to invest in mutual funds is through commission free funds also called no-load funds.  However, many investors buy commission or load funds sold by stock brokers.

There has been endless debate and regulatory action whether load funds are good for the broker or the investor.  Despite four years of work the SEC is yet to come out with a mandatory requirement to force a full disclosure of all fees and commissions paid to brokers by fund families. Blame heavy industry lobbying for these delays.

There is a veritable alphabet soup of load funds. An article in The New York Times tried to determine which type was cheapest.  No clear cut answer but it was felt the most profitable for brokers are A shares. " A " shares charge a commission of up to 5.75 % of monies invested. Plus the broker gets a trailing commission of almost 0.25% year after year.

Other categories of shares spread out a lower commission over a length of time and waived them in the event of disability, divorce or money for required minimum distributions from retirement plans.

It's almost impossible to compare apples with apples.