A mutual fund is a fund that pools money from many investors to and invests into securities. There is a fee charged for having someone else manage the investments. In other words, investing in a mutual fund is similar to buying single stocks or bonds.
Read more to find out about a Mutual Fund.
|Ally Invest||Up to $3,500 Cash & free trades||Review|
|WeBull||4 Free Stocks & free trades||Review|
|TD Ameritrade||$0 Commissions||Review|
Table of Contents
The Basics of Mutual Funds
If you are looking to invest or buy a stock, you either go through the company or through an investing firm that might charge you a pesky fee. However, this process takes time and expertise to reduce the risk.
Rather than having to research each stock, mutual funds eliminate that. A mutual fund makes the fund company buys shares and bonds for you.
Investing in Mutual Funds
It is important to choose which mutual fund to invest in. A mutual fund might hold stocks, bonds, or both. It could be a fund that only invests in a select category such as real estate or health care. It could be a fund that has a mix of stocks and bonds. Finally, it could be a money market fund.
An index fund is an example of a mutual fund that tracks the performance of a market. Index funds charge lower fees than another counterpart.
Mutual Fund Companies
Some companies that specialize in mutual funds include Fidelity, Vanguard and Charles Schwab, and many more. If you have to choose between different mutual funds, you should compare expense ratios. The expense ratio tells you the percentage of a fund’s assets. It is smart to buy the mutual fund with the lower expense ratio because that your money has more opportunity grow.
No-Load Mutual Funds
A load fund is a mutual fund with a sales fee. A no-load mutual fund doesn’t charge you any sales fee. A load fund could be an amount paid up front when buying shares or in several years when selling.
A no-load fund could still have high fees, it is a good idea to find a fund that has low to no loads and low fees.
Mutual funds could be a good investment option depending on your situation. Before you put your own money into a mutual fund, it’s important to make sure you understand how that fund works and what fees might occur.
For more information on banking, check out more bank guides right here on HMB!
|Chase Business Complete BankingSM||$300 Cash||Review|
|Chase Total Checking®||$200 Cash||Review|
|HSBC Premier Checking Member FDIC||$450 Cash||Review|
|HSBC Premier Checking Member FDIC||Up To $600||Review|
|HSBC Advance Checking Member FDIC||$200 Cash||Review|
|HSBC Advance Checking Member FDIC||Up To $240||Review|
|Huntington 25 Checking||$500 Cash||Review|
|TD Bank Beyond Checking||$300 Cash||Review|
|TD Bank Convenience CheckingSM||$150 Cash||Review|
|Huntington Bank Unlimited Plus Business Checking||$750 Cash||Review|
|Huntington Bank Unlimited Business Checking||$400 Cash||Review|
|Huntington Bank Business Checking 100||$200 Cash||Review|
|Wise Business Banking||$100 Cash||Review|
|Axos Bank Basic Business Checking||$100 Cash||Review|
|Aspiration Spend & Save Account||$100 Cash||Review|
|American Express High Yield Savings||0.50% APY||Review|
|CIT Bank Money Market||0.50% APY||Review|
|Ally Invest||Up to $3,500 Cash||Review|