I am confused about the mutual fund investment minimums and buying commission fees. I've been searching these question on the internet but no good answers. Hope someone can answer my questions below here.
When I try to buy mutual funds, there is an investment minimum of, let's say, 10k and it also asks for a commission fee of $20 vs $6 when buying stocks. Why there is an investment minimum, and the buying cost is a lot more expensive than buying stocks? Is the investment minimum only for the initial buying or do I have to buy at least 10k each time when I want to add more value to it? Do I have to pay the same commission fee every time when I buy more of the same mutual fund?
In my 401k account, it seems there is no investment minimum for me even though the fund does have an investment minimum requirement. And it seems I don't get charged for commission fee every time more shares are bought each month from my paycheck contribution. Why is the investment minimum and commission fees are waived in my 401k account?