What is No Transaction Fee in the context of a Registered Investment Advisor (“RIA”)?

Definition: This typically refers to a select list of mutual funds and/or ETFs where there is “no transaction fee” involved when they are bought/sold. This is only applicable though when an account has transaction based pricing.

When used in an RIA context: “The financial advisor chose a mutual fund to buy for the client from the firm’s mutual fund no transaction fee list, and as a result there was not transaction fee charged for the purchase of the fund.”

See also: Episode 15, Episode 23, Episode 24, Asset Based Pricing, Transaction Based Pricing, NTF