What is a good low cost mutual fund?

Question

Can anyone suggest a mutual fund with a very low minimum investment and won't kill me in fees if I make small monthly deposits into it?.... or would an ETF be a better idea?

Answer 1

Take a look at these ETFs: EWN (Netherlands), EWG (Germany), and EWD (Sweden). They have just over a half-percent in costs and low turnover of the stocks while still, with respectable double-digit returns. You can see a comparison on the BusinessWeek Mutual Fund Scoreboard. Meanwhile, AIOIX (American Century International Opportunity) covers much of the same territory with a high turnover (a tad bit lower risk) and almost 2 percent expense ratio.

Take a gander at UTLAX (Morgan Stanley Utilities), which has respectable year-to-date returns with low risk and low turnover and expense at just a hair over 1 percent.

Personally, I prefer shopping ETFs at Ishares. They've made me a few more bucks than some of my other stock picks have done. Good luck.

Answer 2

Many people will tell you this: buy index funds (passively managed funds). Vanguard has many and then invented them back in the early 1970's. Index funds buy the entire market and hold it. This minimizes costs and fees, which in regular equity mutual funds and ETFs are very significant. Actively managed mutual funds (non-index funds) have big fees and costs from constantly buying a selling stocks...that reduces your return and increases your taxes. When you look at a fund, look for index mutual funds...look at the expense ratio...it should be 0.3-0.18% (very low). Put money into it and keep it in there for decades. It will outperform other mutual funds over time guaranteed. Go to the bookstore and read Common Sense Investing by John Bogle (founded Vanguard) or the Lazy Person's Guide to Investing. Investing should be boring. Don't pay the middleman, buy direct. Middlemen just increase your costs whether or not they make you money. A chimpanzee can pick stocks as well as middlemen. It has been proven. Index funds my man...index funds.

Answer 3

T. Rowe Price with very good funds (IMO) allows you to invest as little as $50 per month via automatic transfer from you checking account to them until you reach their minimum of $2500. Expense & turnover ratios are below average. Total Returns for many of their funds are comparable or beat Vanguard's index funds, over the long term.

Answer 4

to pass alongside w/ others: 'Actively controlled money' have a supervisor that tries in stable faith for the fund to make money, through procuring for & merchandising sources for it. the disadvantage is which you're vulnerable to the whims of the administration team, the fund has to pay those human beings to do what they do, plus actively shifting money around generates capital helpful factors, meaning the tax guy takes a extra physically powerful piece (in all probability a extra physically powerful piece) - even possessing a mutual as an prolonged term investment can generate capital helpful factors because of the interest 'in the back of the curtain'). An index fund, in assessment, is passive. It employs a 'purchase & carry' technique for it extremely is sources. some distance much less administration & some distance fewer tax hits on the fund. the wider the index fund, the fewer danger. occasion: the forefront entire inventory U.S. has because it extremely is sole danger the U.S. marketplace as a rule. administration danger, tax danger, specific sector danger is all minimized, while you evaluate that's designed to imitate the U.S. inventory marketplace as an entire.

Answer 5

I personally a fan of T.Rowe Price, but if low cost is the most important factor, than Vanguard is the way to go.

Answer 6

Mutual fund is dependent to market but in u go SIP .So ur reterns is very good bcz ur investment is same rd in post office .but post office give u fix interest & MF give u compaundig interest.SIP is long term thinking its ur future needs After u r live job & emergancy needs.So SIP means Systematic Investment Plan, its ur future use & lumsum investment in MF minimum 5000 & SIP minimum 500.any investment in MF no fees pay to ADVISER.but 2.25% in listed scheme pay to ur investment, its call ENTRY LOAD .Give u ADVISER to ur wealth create,portfolio manage & reconstraction.