I am attempting to invest money in mutual funds for the first time ever but honestly I have no idea how to figure out what is good and what's bad. I've seen sites recommending to look at the fees and the cost of the fund, but I am not sure where to look for that information.
For example, the VHCIX fund. I have the following questions:
- It says expense ratio of 0.14%. What does it mean? That they will take 0.14% of my money or 0.14% of the profit? Basically, I would like to find out that if I invest $1000 and the fund makes 20% in a year...how much money will I actually see?
- How much taxes will I be subject to (I understand this depends on whether there are dividends on individual stocks, but where do I see this information).
- What is considered to be a reasonable expense ratio? VHCIX is at 0.14% while VTTHX is at 1.24% (but significantly cheaper to get into). And this (FFFEX) Fidelity fund claims 0% expense ratio, which I don't get.