Whats is the best and most cost effective way to invest $3000 in a mutual fund? Do i need a broker or online?

Answer 1

Before investing in anything I'd suggest at least getting a basic understanding of mutual funds and investing (in general). If you're too lazy to learn & just want a quick investment....
Vanguard Funds would be the best choice. Do the S&P500 Index Fund or the Total Market Index Fund for diversification & low cost(no commission).

A Brokerage may charge account fees for such a low balance.
For $3000 go direct to a good no-load mutual fund company like;
Vanguard
Fidelity
T. Rowe Price
etc.

Answer 2

The most cost effective way to invest in a mutual fund is to not do it. Mutual funds aren't good investments. The mutual fund managers and your financial adviser all get paid when you buy one, which cuts into your earnings. When you buy one, you're adding a middleman. Do a little research and buy stocks, you can get diversity on your own. It's a much better option.

Answer 3

I would use a full-service online broker such as Fidelity. They have lots of options for investment products including mutual funds.

I would caution you a bit to look hard at mutual funds. With CD rates at 5% or more that might be a better way to go right now.

Answer 4

Mutual money are good for individuals who do no longer prefer to safeguard procuring for and merchandising their shares each and all of the time. fairly the two a fund supervisor does that or the fund is an index fund. controlled money have a greater physically powerful price ration, index money could properly be affordable. The yields - rather that relies upon on the fund or money you chosen. the greater risk the greater earnings. Mutual money are meant as longterm investments and medium risk. around 8-10% according to year yield is conceivable with medium risk. With severe risk you are able to earnings as much as 30-50% - yet you are able to lose as lots. in case you prefer to play risky you ought to placed money into shares or ETFs - purely considering you are able to play that industry then greater desirable and speedier. some markets - like rising markets - make sense to have a controlled fund. purely with the aid of fact this type of supervisor usually is familiar with a particular industry (China to illustrate) rather properly. greater desirable than you are able to ever understand. Others - like the S&P can rather be listed. the forefront S&P Index fund is a affordable occasion or the ETrade S&P fund. and then there are "ETFs" substitute traded money. that are like money - purely you are able to commerce them like shares quickly. they have affordable expenses regularly too. i'm too busy with my interest and different issues so I purely have some mutual money and picked them: maximum stars (4 or 5), least price ratio and a style so i'm various. the customary yield according to year is 8-10% in my portfolio after expenses. i'm pleased with that. earlier that I had a pair of shares and did an extremely undesirable interest on gazing them and merchandising and procuring, so I lost fairly much each and every thing while the businesses went out of corporation and that i had no longer appeared into my portfolio for some months...LOL. So - for me- in no way shares returned. it particularly is a character question, i'm no longer a administration freak adequate and fairly delegate such projects.

Answer 5

Unless it is a closed end fund, which is traded like a stock, you can purchase the fund directly from the fund company. Go to their web site and down load the application form, fill it out, enclose a check, put it in a stamped envelop addressed to them and you are in business.

Answer 6

Put your finger in the mutual fund broker's bum and quack like a duck!

Answer 7

It depends on the fund you choose. You might be able to contact the fund management company directly, and send them a check when you enroll in the fund. That way you'll avoid the commission.

Answer 8

1) TradeKing.
2) Yes.

Answer 9

you can get a broker on line - I use Ameritrade however Vanguard has many many funds and there is no charge at all

Answer 10

Why don"t you use that SHORT simple brain of yours and go and find one.D.H.