Everyman investment RRSPs

An investor may select among four types of sales charges. These include a front load --charged when an investor makes an initial purchase; back end load -- no c harge at the time of purchase, but a redemption fee is charged when the investor sells the shares back (usually in a declining redemption schedule: the redempti on fee is highest in the first year the mutual fund is held and declines after t hat, eventually dropping to zero); no load -- no charge on the purchase or sale, but there is a set-up fee charged by the mutual fund company; low load or C sha res -- the sales charge range from 0-2% on the initial purchase, dependent on th e mutual fund company . The type of commission structure investors select depends on their particular in vestment objectives and need for investment advice. The commission charged on a front load fund can vary up to nine percent of the amount invested, and can be r edeemed at any time at no charge. This fee can be negotiated depending on the am ount of the purchase, the profile of the investors, and their goals and objectiv es. A deferred sales charge is generally five to six percent over a varying numb er of years. This fee is not negotiable. This percentage reduces to zero after a period of time specified in the prospectus. If investors hold funds for the spe cified period of time, they will redeem their investments at no sales charge. Fi nancial consultants with the highest degree of expertise will generally sell a f ront load or deferred load funds. A mutual fund also has a non-negotiable annual management fee which varies, and is generally slightly higher for a deferred sales plan. In most cases, a mutual fund reports their annual return net of the annual management fees, but do not n et out the sales charges.