Questions tagged [mutual-funds]

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

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7 answers
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Why don’t index-tracking mutual funds corner themselves?

I don't really want to think too much about investments -- just park my surplus money somewhere and be able to come back several years later and see that it has grown. (As this question shows, I'm ...
hmakholm left over Monica's user avatar
35 votes
2 answers
3k views

What are the important differences between mutual funds and Exchange Traded Funds (ETFs)?

I've been considering, but haven't committed myself yet to investing in Exchange Traded Funds (ETFs), but have to admit that I don't yet fully understand the use-case for them. What factors are ...
JohnFx's user avatar
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34 votes
4 answers
2k views

Why do a lot of people recommend Vanguard so often?

What is it with Vanguard? I've heard the name come up a bunch, but I don't know why this particular company is getting all the good free press...
Michael Pryor's user avatar
32 votes
8 answers
6k 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. ...
Chuck Callebs's user avatar
30 votes
6 answers
13k views

Is putting money in a 401(k) plan risky?

I've been working for a company that offers me a MassMutual 401(k) plan as a benefit. The employer's match is 50% of my contribution. I've contributed 3% of my gross salary to the plan, and planning ...
domino's user avatar
  • 595
27 votes
7 answers
4k 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 ...
warren's user avatar
  • 3,229
27 votes
3 answers
95k 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 ...
Valien's user avatar
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26 votes
11 answers
9k views

Is 401k as good as it sounds given the way it is taxed?

I contribute full 18 to my 401k thinking I am letting my money grow untaxed for such a long time. However, looking at how 401k is taxed when I pull the money out, it does not sound like a great deal ...
Lost's user avatar
  • 1,601
25 votes
6 answers
8k views

Should I sell mutual funds that are performing well or poorly first?

I have roughly equal investments across 4 different high-risk "growth" mutual funds -- let's just assume that other than all being high risk, they're fairly well diversified. Two of the ...
user85461's user avatar
  • 353
25 votes
1 answer
6k views

What does 'mutual' mean in mutual fund?

I am confused on the usage of 'mutual'. Is there any 'mutual benefit' or 'mutual dependence' between the participants (unit holders) in a mutual fund? It looks more like a 'mixed fund' with diverse ...
Divya K.S's user avatar
  • 351
25 votes
4 answers
8k views

Why would a long-term investor ever chose a Mutual Fund over an ETF?

(I read this previous question but would like to differentiate my question by having it focus exclusively on long term, buy and hold investing). From my understanding, it is conventional wisdom that ...
Matthew Moisen's user avatar
24 votes
3 answers
2k 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 ...
Dang Khoa's user avatar
  • 540
23 votes
11 answers
10k views

What should I do with the stock I own if I anticipate there will be a recession?

I want to preface this with saying I am not asking if there will be a recession because I recognize that this is impossible to answer. I am asking if I feel there will be a recession, what should I ...
Runeaway3's user avatar
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23 votes
7 answers
6k views

Does dollar-cost averaging just means taking risk later?

I am investing in mutual funds and hence reading and trying to learn about it. I was reading this answer which says lump sum investment is far more efficient than DCA. Well, that does not surprise me....
Aastik's user avatar
  • 727
22 votes
2 answers
4k views

Mutual fund value went down, shares went up, no action taken by me

I have no prior experience with stocks so please forgive me if this is a dumb question but I don't even know what to try googling. Two days ago I signed up with scottrade. I put $1000 into ICENX ...
sirdank's user avatar
  • 368
19 votes
5 answers
35k views

Is losing money in my 401K normal?

I had about $10.5K in my Fidelity 401K account invested in their target fund. I started it a year ago. This is my first time with investing in the stock market. For the past 2-3 months, it keeps ...
Kint Kant's user avatar
  • 709
18 votes
10 answers
7k views

What is the worst thing that can happen with my investment in mutual funds?

I have downloaded two apps namely Groww and ET Money to see the various Mutual Funds available in the market. The disclaimer reads that Mutual Funds are subject to market risks. I am curious to know ...
Severus Snape's user avatar
18 votes
3 answers
2k views

Regular contribution threshold for ETF vs Index Mutual Fund?

I've seen enough info out there comparing lump-sum investments into ETFs vs mutual funds with respect to broker commissions in the case of ETFs, and the discrepancy between MERs between the two. In ...
fideli's user avatar
  • 2,283
14 votes
3 answers
24k views

Should I open a Roth IRA or invest in the S&P 500?

I am a 24 year old high school teacher. Currently, I don't have that much capital to open two accounts. I would rather focus on one at a time until I gain more capital. Should I start with a Roth IRA ...
YungAznBeast's user avatar
14 votes
3 answers
2k views

If a mutual fund sell shares for a gain, do investors need to pay capital gains tax twice?

In here it is stated that An investor holding mutual fund shares in a taxable account may owe tax on any net capital gains realized from the sale of his fund shares during the calendar year. In ...
Our's user avatar
  • 373
14 votes
2 answers
4k 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 ...
Paul Kuliniewicz's user avatar
14 votes
3 answers
895 views

Should I "hedge" my IRA portfolio with a life cycle / target date mutual fund?

I'm fully contributing to my Roth IRA every year into a brokerage account that is 100% in mutual funds. I've done basic mutual fund research and picked about 5 different funds that match what would ...
Mike's user avatar
  • 926
13 votes
6 answers
9k views

Why is the price of my investment only updated once per day?

I have invested some money into a mutual fund (FTQGX). I've noticed that the price of it is only updated once a day, where as other investment options are updated continuously. Why is this? I'm ...
David says Reinstate Monica's user avatar
13 votes
2 answers
8k views

How can I replicate Vanguard's Total Stock Market Index using their S&P 500 and extended stock market funds?

I want to approximate the total United States stock market with part of my 401(k). I have access to two low-cost index mutual funds: VIIIX, which tracks the S&P 500 (large cap), and VIEIX, which ...
Craig W's user avatar
  • 15.8k
13 votes
1 answer
14k views

What are Vanguard's Admiral Shares?

What are Vanguard's Admiral Shares? I recently heard about them, and I'm not sure how they differ from the normal shares of their mutual funds I have.
C. Ross's user avatar
  • 7,856
12 votes
4 answers
1k views

Why are some funds only recommended for investors starting out?

I am 23 years old and have been in industry for a couple years and my savings have grown to an amount whereby GIC's are no longer good enough. Since I bank with TD Canada Trust, there seems to be a ...
karancan's user avatar
  • 1,273
12 votes
3 answers
968 views

ETF vs Mutual Fund: How to decide which to use for investing in a popular index?

How do you decide between investing in an ETF, vs. in a mutual fund, for the popular stock indexes? Trading costs, tax efficiency, capital gains?
rjdevereux's user avatar
12 votes
1 answer
6k views

Does a mutual fund's expense ratio include the management fee?

Fidelity's information about their Spartan International Index Fund - Investor Class (FSIIX) has the following information about expenses and fees: Is the 0.17% management fee included in the 0.20% ...
Vebjorn Ljosa's user avatar
11 votes
3 answers
2k views

Should I care about expense ratios?

I've never been an investor before, but I recently came into some money. In my understanding, expense ratios for mutual funds and ETFs are typically incorporated into the yield or ticker price. If ...
shadowtalker's user avatar
11 votes
3 answers
10k views

Did basically all mutual funds have a significant crash in 2008?

I am interested in starting a Roth sometime in the near future, but I'm worried about an economic downturn like 2008 eating up a lot of my savings at some point in my life. Did most mutual funds take ...
Adam Johns's user avatar
11 votes
2 answers
9k views

How do you determine the dividend payout date for Mutual Funds?

For stocks it seems to be easy to find dividend payment information. However, for mutual funds, like VDIGX, I am having an issue figuring out expected payout dates and frequency. Can someone point me ...
DotNetRussell's user avatar
11 votes
3 answers
5k views

Do "growth of $10k" charts for mutual funds account for fees? I've found conflicting information

I've had several people advise me that the growth of $10k charts that you see for mutual funds, and provided by, e.g., Morningstar, account for the expense ratio of that fund (but not sales loads). So ...
Josh's user avatar
  • 289
11 votes
1 answer
429 views

What is a "closed-end fund"? How is a closed-end fund different from a typical mutual fund?

I recently ran across the term "closed-end fund", but the author didn't explain what it was. What is a "closed-end" fund vs a typical mutual fund, and are there advantagets/disadvantages to each?
Nathan's user avatar
  • 500
11 votes
2 answers
1k views

Assessing the value of an ETF

I recently read through Graham's The Intelligent Investor and am looking at what index ETFs or Index Mutual Funds it makes sense for me to invest in. As I was considering this I realized that, at ...
vossad01's user avatar
  • 233
11 votes
1 answer
1k views

Index mutual fund "minimum initial investment" inside a Roth IRA?

When a fund says its minimum initial investment amount is $2500, does that mean I need $2500 in my Roth IRA account to trade that fund? If so, would I need $7500 total in my Roth IRA account to trade ...
kidonchu's user avatar
  • 285
10 votes
3 answers
4k views

Why a bank would propose a depositor to invest part of their money to mutual funds, instead of bank doing it itself?

Currently, some banks in Greece propose their depositors (via financial consultants) to invest their money in foreign mutual funds. Their main argument is that deposit interest rates are close to zero ...
Marinos An's user avatar
10 votes
3 answers
664 views

Should I buy individual bonds for my retirement portfolio, or stick to funds/ETFs?

To avoid the fees on bond mutual funds or exchange traded funds I have been thinking of buying actual bonds inside of my retirement portfolio. Does that make sense or are there drawbacks to consider?
user avatar
10 votes
1 answer
645 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 ...
Dilip Sarwate's user avatar
10 votes
2 answers
921 views

How do I get into the over-the-counter derivatives gravy train

Some philosopher, or banker once said: "If you can't fight them, join them". After reading Matt Taibbi's last two pieces on Rolling Stone on how banks have obtained certain rights to sell hot air ...
miguel.de.icaza's user avatar
9 votes
8 answers
782 views

Should I sell when my stocks are growing?

I have a collection of stock that on average have grown 8% in the last few months. Should I sell now? This is a normal account, meaning tax is of no help. I never understand why people sell while ...
Geo's user avatar
  • 5,825
9 votes
2 answers
2k views

Are there fees or penalties for holding less than $10K in a Vanguard Admiral Shares fund?

I currently have a large sum of cash in a "Rewards Account" at my credit union. The interest rate is at 2.75%. It seems to drop every year. It started out at over 4%. Basically, I am looking to find a ...
Robert Greathouse's user avatar
9 votes
3 answers
321 views

What is a good rule of thumb to determine when to abandon a mutual fund?

For about 5 years now, I have been investing $300-400/month in a so called "high risk" mutual fund. I started just before the crash, and have weathered it. Today its value is 102% of book. I have ...
Chris Cudmore's user avatar
9 votes
2 answers
5k views

Why does a no-load fund have transaction fees? Isn't that a contradiction?

According to Scottrade's website, the T. Rowe Price Retirement funds are "No-load" but at the same time "Transaction fees apply". I thought the whole idea of No-load funds was not having any ...
Christopher Bottoms's user avatar
9 votes
5 answers
819 views

Why do US retirement funds typically have way more US assets than international assets?

I have noticed that US retirement funds generally seem to allocate far more space to US stock than international (non-US) stock. Of course, there is not really any such thing as a prototypical ...
senshin's user avatar
  • 549
9 votes
1 answer
671 views

How can one relatively easily show that low expense ratio funds outperform high expense ratio funds?

Almost everybody these days says that passively managed, low expense ratio funds outperform actively managed, high expense ratio funds. I believe it, and have been investing accordingly, but I would ...
Craig W's user avatar
  • 15.8k
9 votes
6 answers
517 views

How do I find an ideal single fund to invest all my money in?

Suppose I wanted to follow the advice on this blog post: An ideal bal­anced port­fo­lio would be a sin­gle fund. This forces you to look at your invest­ments as one big bucket, elim­i­nat­ing ...
ripper234's user avatar
  • 2,390
9 votes
1 answer
4k views

What happens to investment gains and distributions inside an HSA?

I did some research and it turns out that you can invest funds that you have in your Health Savings Account in certain things. If I invest $5,000 from my HSA into a Mutual Fund (which is acceptable) ...
DotNetRussell's user avatar
9 votes
1 answer
1k views

How does ISA allowance cumulate over time?

I don't understand how the ISA allowance cumulate (if it does) over time. Suppose I use the entire allowance for 2014. So I will have in the ISA 15k £. What happens in 2015? Suppose no P&L was ...
opt's user avatar
  • 353
9 votes
2 answers
2k views

Shifting money between mutual funds

In the last 5-7 years, I've gradually invested money in several mutual funds via my bank (USAA). These funds now make up about a third of my portfolio. Initially I had invested in these funds ...
BrenBarn's user avatar
  • 23.9k
9 votes
1 answer
503 views

Why are index funds called index funds?

Why are index funds called index funds?
ripper234's user avatar
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