is it to keep the fund low?
2007-01-26 23:58:31 · 2 answers · asked by Bill Spry 4 in Business & Finance ➔ Investing
What I mean for example is Vanguard having a min. investment of 10 or 20k on some funds. I'm not talking loads.
2007-01-27 01:20:35 · update #1
Mutual funds with a "such a high buy-in" or sales charge, are being sold by an adviser or a broker. A broker will sell it and may not track it for you or call with suggestions if it is time to reposition. An adviser is not required to do this either by law, but if you find some one who is reputable they will be working in your best interest. This "buy in" pays the dealer of the investment a commission. The charge is 5.75% usually depending on the amount you are investing. Often the no buy in funds, or no load funds are not the best performing investments out there, you often get what you pay for.
2007-01-27 00:53:14 · answer #1 · answered by aritolla 2 · 0⤊ 0⤋
Probably because dealing with smaller investors cost the fund company more. Larger investors tend to trade more, etc.
2007-01-27 03:07:20 · answer #2 · answered by ckm1956 7 · 0⤊ 0⤋