Here’s everything you need to know about what a mutual fund is, how it works, and why they could be your most valuable tool for long-term investing.
It's important to understand how mutual funds assess fees and expenses. These fall into three broad categories: Operating expense ratio (OER) OERs cover the fund's operating expenses and are annually factored into the total return you receive. Load A load is a one-time commission some ...
Simplicity:Once you find a mutual fund with a good record, you have a relatively small role to play: The fund managers do all the heavy lifting of selecting and rebalancing investments. Low costs:Investing costs have come down, and that extends to mutual funds. Mutual funds can be an inexp...
kind of floored Tanya, because she’d never thought of saving or investing, and hadn’t had the faintest idea of where to begin. She’d vaguely heard of something called mutual funds, but she was clueless about how to get started. So, let’s help Tanya understandwhat is a mutual fund...
Make sure you understand how a fund invests before committing any money. If you’re investing in funds that own stocks, it’s important to be sure that you have a long time horizon. Stocks are volatile, so you’ll want to be able to hold the investment for at least three years – ...
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Mutual Funds and taxes Article +Show more Our tools can get you started Use Merrill's powerful investing tools to get actionable insights and find the best investments for you. Our experience will help you find ideas, narrow down your options and help you understand individual investments at a...
When researching the returns of a mutual fund, you'll typically come upon a figure for the "total return," or the net change in value (either up or down) over a specific period. This includes any interest, dividends, or capital gains the fund has generated along with the change in its...
or large-sized capitalization. Others are named by their investment approach: aggressive growth, income-oriented, and value. Equity funds are also categorized by whether they invest in U.S. stocks or foreign equities. To understand how these strategies and sizes of assets can combine, you can ...
Since hedge fund performance details are not publicly transparent, it can be helpful to compare the performance of hedge fund indexes to the S&P 500 to understand the performance metrics involved in comparing hedge funds over standard mutual funds. Fees also play a big part in performance ...