Back-end loads may appear to be a good deal to you. Each year you hold the fund, the load goes down. After a year or two, the broker will recommend you switch funds. Many reasons can be given. You can avoid a taxable gain that will be distributed to you if you hold on. A management change or a style change has taken place. There is always a reason to switch funds. So you agree and pay a smaller back-end load and get a new back-end load fund. Two things are happening that you do not realize: First, each year you hold the fund you are paying larger expenses to management than someone who purchased front-end load shares; the back-end load only goes down as you pay it down. Second, your broker gets a larger, but secret, upfront load from the mutual fund company for selling back-end load funds than for selling front-end load funds.

Brokers will offer you many share classes with many varieties of loads. Funds can have A, B, C, D, and E classes. You will never fully understand why one is better than the other, nor why your broker wants you to switch from one fund to another or from one class to another. The reality is that with each purchase and switch, she gets another nice commission. People pleasing will hurt you here.

Even if you are able to find satisfactory funds on your own or with a broker, you may still have an uncomfortable experience.