Let's recap what we've learned in this tutorial:
- A mutual fund brings together a group of people and invests their money in stocks, bonds, and other securities.
- The advantages of mutuals are professional management, diversification, economies of scale, simplicity and liquidity.
- The disadvantages of mutuals are high costs, over-diversification, possible tax consequences, 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 lots of costs.
- Costs can be broken down into ongoing fees (represented by the expense ratio) and transaction fees (loads).
- 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.
- Mutual fund ads can be very deceiving.
InvestingMutual funds are a great way to build wealth but not all of them are the same. Investors have to be mindful of fees, turnover, redundancy and performance.
InvestingMutual funds are a good investment opportunity, but investors should know how they operate.
InvestingWe list some options other than mutual funds for your retirement plan.
InvestingLearn about the basics - and the pitfalls - of investing in mutual funds.
Financial AdvisorMore 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.
InvestingLearn about the advantages of investing in mutual funds rather than individual stocks, including the benefits of affordability, oversight and diversification.
InvestingWhile the diversification mutual funds offer is certainly nice, it’s important to know when you have too many.