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.

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