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healthcare, or energy. These funds aim to take advantage of the growth potential of a particular sector. Sector funds carry higher risk as they are concentrated in a specific area, and investors should understand the sector before investing. Example: Vanguard Health Care Fund, Fidelity Select Tec...
Mutual funds are an especially common investment for investors who don't want to pick and choose individual investments themselves but want to benefit from the stock market's historically high average annual returns. » View the best-performing mutual funds this month Advertisement Fidelity Merrill ...
Sales loads:These are commissions that brokers collect for selling mutual fund shares to you. These can be triggered when you buy shares of a mutual fund or after you sell your shares before a specific time frame. But look for no-load funds as many funds have done away with these fees....
A mutual fund is an investment vehicle that allows multiple investors to pool their money to buy stocks, bonds and other securities. A fund manager determines which assets to buy and when to sell. How do mutual funds work? A group of investors pool their money to purchase a variety of sec...
Sign up for Fidelity Viewpoints weekly email for our latest insights. Subscribe now Mutual fund sales charges and fees Mutual fund trades may be subject to a variety of charges and fees. Some funds carry a sales charge or load, which are fees you pay to buy or sell shares in the fun...
How to Get a Good Deal on an ETFYou can buy ETFs almost anywhere you can buy a stock – they can be purchased through a broker or a brokerage account. Your best bet is through an online brokerage (likeE*Trade,Charles SchwaborFidelity) that charges low commissions. ...
The largest mutual fund, Vanguard 500 (VFIAX), and the largest exchange-traded fund, SPDR S&P 500 (SPY), follow the S&P 500. Once upon a time, actively managed Fidelity Magellan (FMAGX) wore that crown, yet Magellan doesn’t now even figure in the top 25 roster of funds and ETFs. ...
Typically, the size of a fund does not hinder its ability to meet its investment objectives. However, there are times when a fund can get too big. A perfect example is Fidelity's Magellan Fund. In 1999, the fund topped $100 billion in assets and was forced to change its investment proc...
There are alsoactively managedfunds seeking relatively undervalued bonds to sell them at a profit. These mutual funds will likely pay higher returns but aren't without risk. For example, a fund specializing in high-yield junk bonds is much riskier than a fund that invests in government securitie...