There are several ways to invest in mutual funds
If you want to know how to buy a mutual fund without a broker, then there's good news for you. Many investment companies offer direct purchase of mutual funds. The best way is to visit their pages and see if such programs are offered. The benefit of doing it involves not paying a transaction fee as it often happens when shares are bought through a brokerage account. The drawback relates to a limited investment opportunities (only funds within one fund family are available). Another option is to buy with pension funds such as 401(k) in the United States or ISA in the United Kingdom.
There are also brokerage accounts through which funds, as well as other investments, such as stocks or bonds, can be acquired. Many brokerage houses will not charge investors transaction fees for so-called no-transaction-fee funds, while other brokers will. The charges differ and can be in the neighborhood of $25 per transaction. Due to convenience and expanded options, many investors decide to buy mutual funds with online brokerage accounts.
Finally, funds can be bought through a financial advisor. This is appealing to those investors who want help with managing their investments. Still, learning how to invest can still be useful as not every financial advisor is unbiased. In fact, many funds charge investors loads, or sales commissions, that are an additional compensation for these advisors.
Which option investor chooses depends on a particular situation. Sometimes more than one option is available. Investors need to look into costs as well as how convenient it is to invest in a particular way. Options can be combined, though. Those who save in 401(k) accounts can only invest through their plans, but they can also open IRA accounts with online brokers and invest through these vehicles.
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When it comes to buying shares of mutual funds, investors have several options. These include direct purchases, pensions, brokerage accounts, and with the assistance of financial advisors.