with varying degrees of risk and return.
You will need to call the investment company and talk
with a rep. Suggest Vanguard, Fidelity or TR Price.
You will be sent some paperwork to fill out.
Yearly cost is around 1% give or take.
Return on your investment is unknown since it depends
on how well the mutual fund does.
The amount of risk is up to you. Some funds are high
risk and some low risk. Its your choice.
In my opinion the best thing to look for are low cost index funds. There is a huge difference between a passively managed fund an actively managed mutual fund. The more a fund is actively managed by a mutual fund company, the more they will charge you fees on it. So try for a low cost index fund. I'm not sure if I'm allowed to suggest companies, but Vanguard has good ones, and Fidelity as well.
In my opinion Etrade sucks. Avoid trading. It sounds glamorous but most people do very poorly trading. You want to buy and hold for the long term.
How do i invest in a mutual fund?
--> Go to your bank and set up an account. The bank can set you up with a money manager (employed by the bank) who will buy you a share in mutual fund..or..you can find your own mutual fund and buy into it yourself.
what are the costs of investing in one?
--> the main cost is the management fee you will be charged for having someone run the mutual fund. It is usually around 2%. There are also transaction fees you will have to pay when you buy and sell your share in the fund.
what is the typical return on this investment?
---> depends completely on the mutual fund. Because mutual funds can be comprised of any set of stocks/bonds, mutual funds can be either very safe or very risky. The very risky mutual funds tend to yield the most and the very safe yield the least. There is no "typical" return.
Is this a low, medium, or high risk investment?
---> see answer above, but it is relatively safe (compared to a stock) in that you get the benefit of diversification.
You could go to Vanguard's site and see that they have funds of every description. The best way would probably be to set up an account with eTrade (or other on-line broker) and buy through them. Another good fund family is Dodge & Cox.
When buying mutual funds, be mindful of the fund's management fee, which can vary quite a bit. If you just walk in to a bank and ask, you will be sold a fund with a very high fee structure.
How do i invest in a mustual fund?
what are the costs of investing in one?
what is the typical return on this investment?
is this a low, medium, or high risk investment?
please don't tell me "do your own homework", i am looking for help not a hard time, i am struggling to find these answers
