1. Mutual Funds: Introduction
  2. Mutual Funds: What Are They?
  3. Mutual Funds: Different Types Of Funds
  4. Mutual Funds: The Costs
  5. Mutual Funds: Picking A Mutual Fund
  6. Mutual Funds: How To Read A Mutual Fund Table
  7. Mutual Funds: Evaluating Performance
  8. Mutual Funds: Conclusion

Let's recap what we've learned in this mutual fund tutorial:

  • A mutual fund brings together a large group of people and invests their aggregated money in stocks, bonds, and other securities.
  • The advantages of mutual funds are professional management, diversification, economies of scale, and wide range of offerings.
  • The disadvantages of mutuals are high costs, over-diversification, possible tax consequences, liquidity concerns, and the inability of management to guarantee a superior return.
  • There are many, many types of mutual funds. You can classify funds based on asset class, investing strategy, region, etc.
  • Mutual funds have expenses that can be broken down generally into ongoing fees (represented by the expense ratio) and transaction fees (loads).
  • Some funds carry no broker fee, known as no-load mutual funds.
  • One of the biggest problems with mutual funds are their costs and fees.
  • Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a third party.
  • Comparing fund returns across a number of metrics is important, such as over time, compared to its benchmark, and compared to other funds in its peer group.

Related Articles
  1. Financial Advisor

    A Mutual Funds Guide for Young Investors

    Learn how mutual funds work, why they are so popular and how younger investors can get started by putting mutual funds in their IRAs or 401(k)s.
  2. Investing

    The Advantages Of Mutual Funds

    Learn how to get diversification, liquidity and professional management at an affordable price.
  3. Investing

    What You Need to Know About Mutual Funds

    Mutual funds are a good investment opportunity, but investors should know how they operate.
  4. Investing

    Trading Mutual Funds For Beginners

    Learn about the basics of trading and investing in mutual funds. Understand how the fees charged by mutual funds can impact the performance of an investment.
  5. Financial Advisor

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  6. Investing

    The Advantages Of Mutual Funds

    Diversification, or the mixing of investments within a portfolio to manage risk, is one of the many advantages to investing in mutual funds.
  7. Investing

    Are Mutual Funds A Relic?

    We list some options other than mutual funds for your retirement plan.
  8. Investing

    Mutual Funds Are Awesome - Except When They're Not

    This investment is very popular, but that doesn't mean it comes without risk.
  9. Investing

    Consider These Fees When Evaluating Mutual Funds

    The best way to evaluate a mutual fund is by digging a bit deeper into the fees charged.
  10. Investing

    The Advantages and Disadvantages of Mutual Funds

    As with most investments, mutual funds have both advantages and disadvantages.
Frequently Asked Questions
  1. When are Beneficiaries of a Will Notified?

    Learn when the beneficiaries of a will must be notified, and understand how this requirement varies depending on whether ...
  2. Why Does Larry Page Pay Himself a $1 Salary?

    Google co-founder Larry Page continues to take an annual salary of only $1 as chief executive officer.
  3. What is Common Stock and Preferred Stock?

    Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable ...
  4. Can CareCredit be Used for Family Members?

    Learn more about the available options that CareCredit offers to pay for out-of-pocket medical procedures with little to ...
Trading Center