Comments on: Why and How to Buy a Mutual Fund http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Fri, 19 Mar 2010 18:26:43 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Padraic Heneghan http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-32393 Padraic Heneghan Mon, 22 Jun 2009 01:11:20 +0000 http://www.mint.com/blog/?p=3448#comment-32393 This is a good summary but it is important for investors to choose carefully. Many choose a diverse selection of funds without realizing that there is a large overlap in the holdings of the funds that they are invested in which defeats the purpose. I have worked as a consultant in the research department of a Chicago mutual fund institution and can tell you that the expertise of the portfolio managers is questionable. Also, with so many mutual funds out there, the research required is not much more than in selecting individual stocks. If investors are not willing to put in the time, just do as John Bogle of Vanguard and Warren Buffett suggest and invest in a low cost index fund. You will sleep much better at night. This is a good summary but it is important for investors to choose carefully. Many choose a diverse selection of funds without realizing that there is a large overlap in the holdings of the funds that they are invested in which defeats the purpose.

I have worked as a consultant in the research department of a Chicago mutual fund institution and can tell you that the expertise of the portfolio managers is questionable.

Also, with so many mutual funds out there, the research required is not much more than in selecting individual stocks. If investors are not willing to put in the time, just do as John Bogle of Vanguard and Warren Buffett suggest and invest in a low cost index fund. You will sleep much better at night.

]]> By: Mutual Fund Advisor India http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-32096 Mutual Fund Advisor India Fri, 12 Jun 2009 11:34:45 +0000 http://www.mint.com/blog/?p=3448#comment-32096 Thanks for the information and important guidelines before buying the mutual fund. Some funds require less fee while some take huge amount. Everyone has to read some article and reviews on internet before buying mutual funds. Thanks for the information and important guidelines before buying the mutual fund. Some funds require less fee while some take huge amount. Everyone has to read some article and reviews on internet before buying mutual funds. ]]> By: Glenn Fernandes http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31856 Glenn Fernandes Fri, 05 Jun 2009 11:00:17 +0000 http://www.mint.com/blog/?p=3448#comment-31856 Thanks for the information. I do invest in mutual funds for it gives good returns,will definitely follow the above steps mentioned. Thanks for the information. I do invest in mutual funds for it gives good returns,will definitely follow the above steps mentioned. ]]> By: Water fountain http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31794 Water fountain Wed, 03 Jun 2009 02:42:10 +0000 http://www.mint.com/blog/?p=3448#comment-31794 I agree that mutual funds are a great investment for most people. However, purchasing mutual funds is best done directly through the fund company you have chosen. There are usually no fees for purchasing directly from the mutual fund company. Unlike a brokerage that normally charge what can be quite a substantial fee. I agree that mutual funds are a great investment for most people. However, purchasing mutual funds is best done directly through the fund company you have chosen. There are usually no fees for purchasing directly from the mutual fund company. Unlike a brokerage that normally charge what can be quite a substantial fee. ]]> By: jack http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31777 jack Tue, 02 Jun 2009 07:02:30 +0000 http://www.mint.com/blog/?p=3448#comment-31777 I guess not now, even if it is tempting. The global economy is not yet recovering good. I will still be watching the trends anyway... thanks for the good article in here. I guess not now, even if it is tempting. The global economy is not yet recovering good. I will still be watching the trends anyway… thanks for the good article in here. ]]> By: John http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31674 John Thu, 28 May 2009 23:16:43 +0000 http://www.mint.com/blog/?p=3448#comment-31674 Stocks are $7 min at a reputable firm like Scottrade. Mutual funds can be a good $0, no? Stocks are $7 min at a reputable firm like Scottrade. Mutual funds can be a good $0, no? ]]> By: Joel http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31672 Joel Thu, 28 May 2009 20:21:06 +0000 http://www.mint.com/blog/?p=3448#comment-31672 This article is crap. Research shows that mutual funds have not outperformed indexed ETF investment. Google it. You're better managing funds yourself and for less fees. This article is crap. Research shows that mutual funds have not outperformed indexed ETF investment. Google it. You’re better managing funds yourself and for less fees. ]]> By: Brian http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31668 Brian Thu, 28 May 2009 16:42:08 +0000 http://www.mint.com/blog/?p=3448#comment-31668 Don't forget to research any up front loading costs and expense ratios. Over the years, a 1% annual expense ratio will wreak havoc with your long term gains. Don’t forget to research any up front loading costs and expense ratios. Over the years, a 1% annual expense ratio will wreak havoc with your long term gains. ]]> By: Matthew F. http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31664 Matthew F. Thu, 28 May 2009 13:49:36 +0000 http://www.mint.com/blog/?p=3448#comment-31664 Great recommendation GE. Let's continue to stear people towards mutual funds who have very little financial education and put their money in the hands of advisors who take the majority of any gains that are left after all of the diversification. This approach has had done well of the last year or so as mutual funds have inflated the value of companies being publicly traded and have caused millions of baby boomers who don't have time on their side to panic and pull their investments that have little or nothing left. How many people out there who are wealthy actually invest in mutual funds? Great recommendation GE. Let’s continue to stear people towards mutual funds who have very little financial education and put their money in the hands of advisors who take the majority of any gains that are left after all of the diversification. This approach has had done well of the last year or so as mutual funds have inflated the value of companies being publicly traded and have caused millions of baby boomers who don’t have time on their side to panic and pull their investments that have little or nothing left. How many people out there who are wealthy actually invest in mutual funds? ]]> By: John http://www.mint.com/blog/finance-core/why-and-how-to-buy-a-mutual-fund/comment-page-1/#comment-31653 John Thu, 28 May 2009 03:07:58 +0000 http://www.mint.com/blog/?p=3448#comment-31653 Word, btw PIMCO, bonds are the bomb. Kudos to AGG (etf), SWNTX. How can you beat 4%+ annual returns? http://www.indexuniverse.com/publications/journalofindexes/articles/149-may-june-2009/5710-bonds-why-bother.html And of course, bonds are better than stocks ;) I will be jumping on the bond/mutual bond wagon as soon as I get some cash. Word, btw PIMCO, bonds are the bomb. Kudos to AGG (etf), SWNTX. How can you beat 4%+ annual returns?
http://www.indexuniverse.com/publications/journalofindexes/articles/149-may-june-2009/5710-bonds-why-bother.html
And of course, bonds are better than stocks ;)
I will be jumping on the bond/mutual bond wagon as soon as I get some cash. ]]>