Confused about Trimark fund

Q – I’m considering purchasing shares of Trimark RSP Global Balanced as recommended in your Mutual Funds Update newsletter. There are two funds with the same name, AIM1913 which is no load, and AIM1911 which is back load. Is the no-load version the obvious choice or is there a reason to select the back-load version? – S.A.

A – Actually, AIM 1913 is a front-end load fund, not a no-load one. The sales option is the usual one for load funds – you can choose either a front-end or back-end load (deferred sales charge).

Which you select depends on several factors. If you can get the front-end version at zero commission (which some advisors now offer to earn the trailer fees), that would be the preferred choice. If you have to pay a sales commission, then consider how long you are likely to own the units. If you’re in for the long haul, the deferred sales charge option may be the best choice. You put all your money to work right away and if you hold long enough the DSC will drop to zero. The MER is the same in both cases on this fund, which is not true for all Trimark funds. – G.P.