There are innumerable things that cross our mind when we think about no load mutual funds. We may wonder whether are we really saving in good chunks or are we sacrificing on more dollars than we are actually saving?

When you choose your mutual funds you expect that it should require least expenditure in terms of purchasing price and maintenance and you do not have to sit for hours together monitoring the expense ratios or searching for plans with the lowest charges. However, inspite of all these precautions that you take before investing your mutual funds you realize that the investments are not really meeting your requirements or expectations and hence you are not really satiated.

If this is exactly the scenario at your end its time for you to realize that your ideology about investing is definitely going wrong. If you are focusing on which is the cheapest rate you are actually running behind cost effective rather than value effective products.

Such investors look out for the best lowest rate that they could get with no 12b1 charges but they are forgetting about the quality of the service/fund they are buying. They do not realize that such funds are at a higher risk of malfunctioning. Such penny wise but dollar foolish investors end up sacrificing more than they could have ever saved!

So how do you look for loopholes so that you do not into this category of dollar foolish investors? Here are a few points to take notice of:

1) It is rightly said that the bigger the better! You ought to shift your focus from short term benefits and give up this parsimonious attitude. It makes much sense in diverting your energies and resources into purchasing mutual funds which might be a bit expensive but give you higher returns over a stipulated period than going in for the best bargain and not gaining any percentage increase eventually.

2) You need to look out for a fee-based investment consultant who uses a facts-based methodological analysis and has been able to maintain an unswerving track record denoting good returns in a short span. Once you find such genuine advisors you will definitely not mind shelling out a penny or two extra for the guaranteed returns.

The thumb rule is that although you may not want to spend more on mutual funds, you do need to watch out for performance in terms of good returns as well. And you can get good returns only if you are ready to shed the skins of stinginess and start looking at the broader picture. Only then can you enjoy the perks of performance-oriented mutual fund investing!

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About the Author

Jay Moncliff runs http://2000.easyinvesting.info/ ; a website specialized on investing information, resources and articles. Added info on investing information, real estate investing guide at: real estate investing guide .