To be used for any questions on mutual funds. For index based funds question the Index-fund tag should be used.

learn more… | top users | synonyms

1
vote
1answer
194 views

Why are mutual fund dividends and capital gains reinvested at different prices on the same date?

Consider the following mutual fund statement. The fund reinvested both capital gains and dividends on the same date, yet the reinvestment cost per share is different for the dividends than it is ...
12
votes
3answers
598 views

If low-cost index funds are considered the best investment, why are there so many high-cost, managed funds?

The general consensus is that the single best indicator of a fund's future performance is the its expense ratio (source). If you look for more than 5 minutes online you discover the Bogleheads ...
22
votes
7answers
1k views

Why is the dominant investing advice for individuals to use mutual funds, exchanged traded funds (ETFs), etc

The dominant advice on this site (including that which I give to novices) regarding investing is to only invest in fund vehicles (mutual funds, ETFs, etc), rather than in individual stocks. Why is ...
0
votes
3answers
3k views

Where can I find accurate historical distribution data for mutual funds?

I've used Yahoo! Finance to get historical price and dividend data in the past. A recent experience has made me question its accuracy and left me searching for a trusted, accurate source. Here is a ...
2
votes
1answer
117 views

Is there a problem with buying small amounts of a no-fee mutual fund every two weeks?

I am treating my HSA as a retirement account. To max it out I contribute about $100 every pay period (roughly every two weeks) pre-tax, plus employer contributions sprinkled in occasionally. Once I ...
2
votes
1answer
469 views

Bid/ask spreads for index funds

Let's assume for simplicity that each company in the S&P 500 has the same market capitalization, and has a share price of 1$. Further, assume the fund allocates 1% for operation costs. So when I ...
1
vote
1answer
53 views

Does ownership of a mutual fund in another account sufficient to buy more if it is “closed to new investors?”

I would like to purchase shares in a mutual fund that has closed itself to new investors. The account in which I would like to purchase the shares is in my current employer's retirement plan. I ...
1
vote
1answer
744 views

How to determine mutual fund or ETF capital gains taxes in Canada?

I live in Canada. I invest with TD Waterhouse, but I believe my question is unrelated to my specific broker. Over the course of 2011 and 2012, I invested in a mutual fund indexed to the S&P/TSX ...
7
votes
2answers
1k views

Is there any real risk in having all mutual funds with the same brokerage?

My retirement accounts (Roth IRA and traditional 401k) are with Fidelity. In the unlikely even that Fidelity goes under, what happens to my money - is it gone? If so, does it make sense from a risk ...
0
votes
2answers
170 views

How to calculate the total managing/transaction/etc costs of an index ETF and an index mutual funds?

I am considering to passively invest my savings, and I am deciding between an S&P 500 ETF or S&P 500 mutual fund. Yet, I am not sure what to look for in each option and how to calculate the ...
2
votes
2answers
4k views

How is exit load calculated in case of SIP in mutual funds?

Assume I invest Rs.1000 on the 1st of January in a mutual fund that charges an exit load of 1% for redemption within 1 year. After 6 months I invest Rs.500 more in the same fund. Now how much would ...
7
votes
1answer
173 views

Why are the administrative fees for the three biggest donor-advised funds identical?

Fidelity, Vanguard, and Charles Schwab—the companies that run the three largest donor-advised funds—all charge exactly the same administrative fee to small investors: 0.6% a year on the first ...
2
votes
2answers
196 views

Mutual Funds Definition and Role

So mutual funds are funds which have exposure to a variety of assets to reduce the risk. But there are mutual fund companies (like BlackRock) in which people can invest into, and they determine a ...
0
votes
2answers
64 views

How do I get a list of the top performing funds between two given dates?

Between dates X and Y return a list of the top performing funds, indexes, ETFs, etc for that date range. i.e. if a lump sum had been invested at date X, a list of which funds had the top performance ...
3
votes
1answer
114 views

Comparing an Income vs Growth fund

Looking at FRIFX vs FRESX - the former is an income REIT, the latter a capital growth fund. Does the view at Google Finance compare the performance of both funds assuming all dividends from the ...
7
votes
1answer
220 views

Starting off as an investor

For 2 years I am alternating between 4 months of work and 4 months of school, so for the first time in my life, I have a lot more money than I need. I will be graduating in 15 months and am looking ...
2
votes
1answer
145 views

Individual Investor Safe Reinvest Gains Strategy?

This hasn't been well thought through, but would the following strategy -- over time -- minimize risk in the market and work towards guaranteeing a higher rate of return? Let's assume a principal ...
0
votes
1answer
165 views

What else besides fees should I consider in rebalancing my fund portfolio's asset allocation?

My portfolio is currently $10k invested in VWNFX. I also have a 401k (contributing about $13k/year) and an emergency fund. But for the purposes of this question I am just talking about my ...
1
vote
2answers
82 views

Where are open-end funds traded?

From Wikipedia, I learned that close-end funds and ETFs are traded over exchanges, and open-end funds are not. I wonder where open-end funds are traded? Thanks!
9
votes
2answers
1k views

Does the expense ratio of a fund-of-funds include the expense ratios of its holdings?

Suppose a mutual fund invests only in other mutual funds, instead of investing in stocks or bonds directly. Does the reported expense ratio of that fund include the expense ratios of the funds it ...
-2
votes
2answers
266 views

Can a mutual fund have 1099-INT form

In my investment account, there are holdings in a mutual fund and in a money market. The 1099-DIV form of my account has the following nonzero items: Total ordinary dividends (qualified ...
2
votes
1answer
4k views

Difference between 1099-DIV and 1099-B forms

I was wondering about the differences between 1099-DIV and 1099-B forms. In the case of mutual funds, Is 1099-DIV for reporting investment income due to trading of the securities in a mutual fund, ...
1
vote
2answers
3k views

Timing of selling shares of mutual funds with respect to tax and investment income distribution

When planning to buy shares of a mutual fund, if I understand correctly, it is better not to buy at a time right before the fund distributes its investment income to its shareholders, since the new ...
1
vote
2answers
497 views

Net loss not distributed by mutual funds to their shareholders?

From Wikipedia Mutual funds pass taxable income on to their investors annually. The type of income they earn is unchanged as it passes through to the shareholders. For example, mutual fund ...
0
votes
1answer
149 views

How to understand expenses matter relative to investment type for mutual funds?

From Wikipedia Expenses matter relative to investment type There are three broad investment categories for mutual funds (equity, bond, and money market - in declining order of historical ...
6
votes
1answer
206 views

How do hedge funds work?

I understand the basic idea of hedging - buying contracts on something today hoping it will help flatten costs over the long run (eg what Southwest did in the late 90s and early 00s when they bought ...
1
vote
1answer
79 views

How do the returns generated via Equity/Debt investment differ from the returns from a Mutual Fund based on Equity/Debt?

My point is as both involve equities/debts(direct investment) in the main role, how is it that Equity/Debt is considered as a high returns/high risk venture and Mutual Fund a low risk/ low return ...
5
votes
2answers
251 views

Where to find historical hedge fund returns?

Where can I find historical hedge fund return information? Are there any free resources?
6
votes
1answer
399 views

When you buy mutual funds through a broker, where are the shares held?

This question arises from a previous one regarding managing all one's investments from one screen on a brokerage house's web site, and a recent answer by @Patches regarding segregation of the ...
7
votes
2answers
381 views

What are these fees attached to mutual fund FSEMX?

Could somebody please explain these fees attached to FSEMX? Annual Report Expense Ratio (net) Prospectus Net Expense Ratio Prospectus Gross Expense Ratio Finance.yahoo.com indicates that they are ...
18
votes
3answers
29k views

What Mutual Funds does Dave Ramsey Invest in?

Heard Dave Ramsey speaking the other night on his growth mutual fund strategy and he mentioned reading one of his fund's prospectus and said this fund had a 78 year history and 11.94% average return ...
0
votes
1answer
2k views

Is it possible to manage my multiple accounts and my wife's multiple accounts as a single portfolio with TD Ameritrade?

Is it possible to manage my multiple accounts and my wife's multiple accounts as a single portfolio with TD Ameritrade's online tools? I would like to do easy asset allocation across all those ...
1
vote
1answer
115 views

How to research an obscure Mutual Fund and how “legit” it is?

I am considering investing in a Mutual fund that has great returns (beating the SP500 index by 3x over 2,5,10 years) but it's somewhat obscure, not carried by Vanguard or Fidelity. This gives me some ...
6
votes
2answers
984 views

What are short-term fairly liquid investments with attractive yields?

I am looking for fixed-income investments or investment strategy that offer quarterly liquidity and attractive annual effective yields and low risk (i.e. holding the security for a a quarter should ...
6
votes
2answers
109 views

How are active ETFs possible?

I'm having trouble wrapping my head around how it's possible to have these new active ETFs. How do they operate, realistically? I mean, the point of ETFs (as a structure) is that arbitrageurs can ...
8
votes
2answers
118 views

Socially responsible investing accreditation

I've found some "socially responsible" funds that I'm interested in investing in. I have no idea how to tell if they're a scam though. Is there an accreditation agency or something similar which can ...
4
votes
1answer
96 views

Foreign tax credit carryover w/o having filed previously?

I owned VGTSX for years now but only in year 2011 was it a requirement for me to file taxes. Can I claim foreign tax credit carryovers for past years even though I didn't file taxes during those ...
3
votes
1answer
473 views

Do all ETFs fall under the Investment Company Act of 1940?

Do all ETFs fall under the Investment Company Act of 1940? If not, how would a buyer know? Are there legal or financial terms to look for in the prospectus, or will be it spelled out explicitly?
3
votes
1answer
4k views

What exactly are minimum subsequent investment requirements?

I was looking at some mutual funds that list amounts for "initial" and "subsequent" investments under the "minimum investment" category. At first I thought that the "subsequent" requirement meant ...
9
votes
2answers
576 views

How do 401(k) mutual fund expense ratios work?

Simple question - how do expense ratios work? Is there a fee that is calculated regularly, and the amount is taken out of my account? Is it subtracted from the funds earnings? Context: My work has ...
1
vote
2answers
462 views

Which brokers offer the largest selection of mutual funds?

I use Morningstar for mutual fund picks, but my broker (Merril Lynch) does not offer many of them. It's a pain because sometimes they don't offer good fund alternatives. Is my only option to move to ...
4
votes
1answer
75 views

Should I have be worrying about selling a mutual fund before keeping it 1 year in an IRA account?

I am considering selling a mutual fund in a Roth account that I have had for less than a year. Since Roth and traditional IRA accounts are tax sheltered and capital gains only apply when distribution ...
0
votes
1answer
30 views

Understanding company pension plan monthly purchase of funds

A pension based on funds. What does it mean to add £500 a month to a pension based on funds? Does that mean, I will own an additional £500 worth of that fund each month based on how much of the fund ...
8
votes
3answers
189 views

When to hire an investment professional?

I have a large (on the order of several year's worth of pay) amount of money currently invested in a few mutual funds that collectively match my suggested asset mix (based on risk tolerance and ...
5
votes
2answers
273 views

Mutual fund operations: How do mutual funds deploy incoming cash from investors in a fund?

I know there are many different answers for this depending on the strategy of the fund. I have heard that some funds invest cash from incoming fund purchases into money markets until they are ready ...
4
votes
1answer
379 views

Wash sale rule + Mutual Funds/ETFs?

According to IRS rules, you can't sell a security, take a capital loss on your taxes, and then buy back the same or a "substantially identical" security within 30 days. However, "substantially ...
22
votes
9answers
3k views

Paying Off Principal of Home vs. Investing In Mutual Fund

I close on my first home October 21. I've locked in a 4.330% APR on a 30-year fixed conventional mortgage and my payment will be ~$800/month. I've put the required 20% down to avoid paying PMI. ...
4
votes
3answers
313 views

How can I find a high-risk, high-reward investment that is not strongly correlated with the U.S. economy?

I'm looking to add something to my investment portfolio for diversification. Right now, I own mostly a U.S. stock index fund, with a little bit of an international stock index fund, bonds and cash ...
2
votes
1answer
159 views

What is the best way to balance my asset allocation with world allocation (aka “Go Anywhere”) mutual funds?

I purchased a couple of "world allocation" (aka "Go Anywhere") mutual funds. When I plugged one of them (FAIRX) into Morningstar and it showed up as a "large blend" fund. So I figured I could ...
4
votes
3answers
135 views

Short term cutting losses in a long term investment

I've only recently bought some mutual funds last year. Since then, my mutual funds' value has been losing money. When I set up this fund with my broker last year, for my investment portfolio I ...