In: Categories » Legal and finance » Stocks and mutual funds » Buying Mutual Funds Online Using an Online Broker
|
You have many choices in how you purchase mutual funds. In addition to purchasing directly from the mutual fund company, you can purchase mutual funds through registered representatives of banks, trust companies, stockbrokers, discount brokers, and financial planners. To purchase mutual funds via the Internet, go to an online broker’s Web site. (I list a few examples later in this section.) Register by completing the online application form. You have to provide the same information you normally provide for opening an online brokerage account. The Internet is constantly changing, so check out the online brokerage’s latest rates, new special mutual fund purchase programs, and brokerage statement download capabilities before sending in your application for a trading account. To have a fully functioning account, brokerages are required to have your signature on file. After they have your signature on file, you can buy or sell as much as you want. After you open your account, log on to the Internet, go to your brokerage Web site, and enter orders by completing the online form. Access your account at any time and monitor your investments by using online news or quote services. Some of the online brokers in the following list are often called mutual fund shopping centers because of the wide variety of mutual funds they carry. For example, you can find funds that have no transaction fees, no-load funds, and front- or back-loaded funds. Charles Schwab (www.schwab.com) transaction fees vary based on the funds you select. The minimum deposit required to open an account is $10,000. TD Waterhouse (www.waterhouse.com) requires a $1,000 initial deposit. While selected mutual funds carry no transaction fees, other mutual funds are $24.00 per trade. E-TRADE (www.etrade.com) offers some no-transaction-fee mutual funds and charges $24.95 commission on other mutual fund trades. E-TRADE has a unique feature — rebates on Rule 12b-1 fees. The minimum deposit to open an account is $1,000.
|
legal disclaimer
1) Our website is not responsible for the information contained by this article as well for any and all copyright infringements by authors and writers. E-articles is a free information resource. If you suspect this article for any copyright infringements, please read the Terms of service and contact us to investigate the problem.
2) The E-articles directory team is not responsible for inaccuracies, falsehoods, or any other types of misinformation this tutorial may contain and will not be liable for any loss or damage suffered by a user through the user's reliance on the information gained here. Please read the Terms of service
Useful tools and features
If you like this article (tutorial), please link to it from your web page using the information above. Linking to this page, this is the only way to help us improve our service, the same time providing your visitors with a way to improve their online experience.
related articles
Stock trading is an important activity for the business people related to the trading business. The purpose of this activity is simple: to invest in the business and to raise capital. This article speaks about how does the stock trading work, its pros and cons. The new trading techniques made life easier and provide possibilities for everyone who really wants to get in this business. Also, while the internet provides full access, you may receive daily updated information about your stock trading venture. ...
2. Buying Mutual Funds Online ~ No Broker Needed
Before you invest in a mutual fund, read the fund’s prospectus so that you understand exactly what you’re investing in. Next, fill out the online account application form for the mutual fund company. At companies like Vanguard (www.vanguard.com), depending on the type of type of account you desire, you can open an account online or print the application and mail it to the mutual fund firm. For specific details about opening an account, contact the fund company or broker. In general, you need to com...
3. Guidelines About When Is The Right Time to Sell Your Mutual Funds
If your fund becomes one of the worst performers, consider selling. However, you need to look at more than just the fund’s rating. Consider these guidelines for determining when to sell a fund: You may want to sell if you have overlapping stocks in your portfolio. (For more about overlapping stocks, see the sidebar “Checking for overlaps in your mutual funds.”) You can use the Morningstar Portfolio X-Ray feature (portfolio.morningstar.com) to discover whether the two growth mu...
4. ECNs ~ It`s Not Your Grandfather`s Market Anymore
Recent changes in SEC regulations and technology have transformed how investors interact with the stock market. I explain these changes in the following sections, and I show you how these changes enable online investors to make more money on their investments. In the following sections, you gain an understanding of what happens after you click your mouse button to execute an online trade. You also discover how you can avoid hidden transaction costs by using an electronic communications network (ECN) and how you benefit from ECNs ...
Over the years, the stock market has outperformed any other investment. Unlike a mutual fund, however, individual investors frequently can’t purchase a large number of different securities to diversify their investment risk. Buying shares in a mutual fund solves this problem. When you invest in a mutual fund, the diversity of the portfolio reduces the risk of losing your total investment. Selecting the right fund may be difficult, but you can find plenty of online help. Assume that you have $1,000 to inves...
6. How to Screen Mutual Funds Online
The Internet provides a variety of mutual fund screening tools that sort thousands of mutual funds by criteria that you select. For example, you may want one type of fund for your children’s education — something long term because you don’t need the money for 10 to 20 years — and a different fund for your retirement to help you reduce your current tax liabilities. With these online screening tools, you can evaluate several funds that meet your financial needs. Most of the stock-screenin...
7. Advantages and Disadvantages of Mutual Funds
As a general rule, the first palce to start analyzing a fund is by by comparing its expense ratio to similar funds. All funds have fees and expenses, but the amounts vary. In addition to sales and redemption fees, the mutual fund’s prospectus indicates the fund’s management and administration expenses. The fund’s investment advisor generally receives 0.5 to 1.0 percent of the fund’s average daily net assets. Administrative expenses include legal, auditing, and accounting costs, along with the f...
8. What you have to know to determine the fair value of a stock and the right price
You can use several methods to determine the fair value of a stock. Throughout the following sections, I discuss three of the more popular methods of determining the right price for a stock: Fundamental analysis Technical analysis Market timing Valuing securities is important to your financial health. Stocks are more difficult to value than bonds. Bonds have a limited life and a stated payment rate. Common stocks don’t have a limi...