The funds, known as contractual plans, impose sales fees that eat up half of an investor's contributions in the first year.

These funds have sales fees, albeit hidden ones, that reduce returns over time.

Investors in traditional trusts usually pay a sales fee, or load, of 3 to 6 percent for their initial purchase.

Many funds also charge sales fees when you buy into, or sell out of the funds, some as high as 5.5 percent.

In addition to no-load funds, there are also funds that charge up to 3.5 percent as a sales fee.

Class members can use the certificates against future sales fees, and the auction houses will have to pay out less cash initially.

Alliance funds have $136 billion in assets under management and charge a sales fee, or load.

Some funds, called no-load funds, do not charge any sales fee.

Investors in no-load funds avoid initial sales fees, though not annual expenses.

That is on top of expenses charged by each fund and one-time sales fees of up to 3 percent.