Expert: Docs99 Date: 10/7/2007 Subject: ETF and Mutual Funds
Question Hello!
I am 32 and have began to invest for retirement.
I have a couple questions if you don’t mind:
1) I plan to start an 403B and an IRA. I have some investments in mind (eg: Int value funds, U.S. Value funds, S&P 500 index funds etc).
Now my question is to fit these investments I have in mind, should I choose Mutual funds or ETF’s?
2) I noticed that when I go to buy a mutual fund through a broker, I am charged a transaction fee (say $20). I heard that if I buy that same mutual funds directly through the company that offers it I pay no transaction fee. For example, if I want to buy a Vanguard Large Cap Mutual Funds from Scottrade I would pay say $20 in fees. But If I bought that fund directly from Vanguard there would no fee.
So if this is the case, then why do people buy mutual funds through a broker vs directly from the company.
Thank you
Asad Raza
Asad_raza5367@hotmail.com
Answer Hi Asad,
You may want to do some research on your own first and find out about the fees charged by companies, using a rep or no. Bear in mind that no load means no help. A duly licensded registered rep will never charge you directly unless you are agreeing to an evaluation of your asset position, etc. You may want to find out the fee no fee issue by talking to customer service. A broker should not be charging you directly.
