- Jan 2, 2006
- 10,455
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Correct me if I'm wrong:
- A mutual fund could have a yearly fee of 1% or less. This is to pay for the managers that actively manage the fund.
- A mutual fund could have a load - a front load and/or a back load. If you spend $10,000 to buy shares of a fund with a front load of 1%, you pay 1% ($100) to buy that fund. When you take out $10,000 from that fund and if it has a back load of 5%, you have to pay $500 to exit and take out that $10,000. The loads are not a yearly thing. They are only paid at entry and exit. If you park your money in the same mutual fund for years and years and years, the front load will be spread out, but the back load will sting a lot when you decide to cash out.
Does this sound about right?
I've heard that Vanguard mutual funds are the best because they're no-load, no fees - what are their symbols?
I'm considering going with TDAmeritrade and they don't seem to have any Vanguard funds, but they have a huge list of other No Transaction Fee (NTF) funds:
https://research.tdameritrade.com/grid/public/mutualfunds/fundfamilies/fundfamilies.asp?tab=ntfs
- A mutual fund could have a yearly fee of 1% or less. This is to pay for the managers that actively manage the fund.
- A mutual fund could have a load - a front load and/or a back load. If you spend $10,000 to buy shares of a fund with a front load of 1%, you pay 1% ($100) to buy that fund. When you take out $10,000 from that fund and if it has a back load of 5%, you have to pay $500 to exit and take out that $10,000. The loads are not a yearly thing. They are only paid at entry and exit. If you park your money in the same mutual fund for years and years and years, the front load will be spread out, but the back load will sting a lot when you decide to cash out.
Does this sound about right?
I've heard that Vanguard mutual funds are the best because they're no-load, no fees - what are their symbols?
I'm considering going with TDAmeritrade and they don't seem to have any Vanguard funds, but they have a huge list of other No Transaction Fee (NTF) funds:
https://research.tdameritrade.com/grid/public/mutualfunds/fundfamilies/fundfamilies.asp?tab=ntfs