Where to Purchase Mutual Funds

The Financial Planning Center

Comprehensive Financial Planning

This section covers mutual fund education designed to help beginners and professionals alike. There are many aspects of mutual funds an investor should understand before a mutual fund purchase is made.

The information below is to inform you of the differences between mutual fund providers and the questions you should be asking before determining where to purchase your mutual funds.

Mutual Fund Education

Why Mutual Funds?

What is a Mutual Fund?

How Mutual Funds Work

Mutual Fund Risk

Advantages/Disadvantages

Mutual Fund Expenses

Costs you Wont Find in a Prospectus

Mutual Fund Categories

Fund Management Styles

How an Investment in a Mutual Fund Makes Money

Investment Company Act of 1940

Where to Purchase Funds

Future Value Chart

Questions to Ask Before You Open an Investment Account

Where to Purchase Mutual Funds

Here are a few questions one should ask before opening an account to purchase a mutual fund:

Is a wide selection of both load and no-load funds available? More option are always better than less options.
When purchasing a fund, whether load or no-load, will there be any other fees charged? Many mutual fund providers will charge a fee for purchasing both load and no-load fund from another mutual fund family and some will not allow the purchase at all.
Will a financial planner be assigned to the account? A financial planner can assists you in many ways whether it's to assist in setting up a diversified portfolio, researching funds and providing information, or dealing with problems in your account. This less time, knowledge, and resources you have the more beneficial a full-service representative can be. Financial planners take a proactive approach based on knowledge, experience, and foresight. The less knowledge, experience, and foresight an individual has the more likely their financial decisions will be reactive. Reactive planning can be an expensive way to learn.
If a full-service representative is available, is there a fee? Seldom will a mutual fund providers provide a full-service representative. Firms that do offer this service may impose an extra fee such as a "wrap fee" common with larger broker/dealers. A common wrap fee is usually 1% to 3% annually on the assets being managed. Mutual fund providers that are not full-service may provide the assistance of some type of financial advisor on a fee basis. Consult each provider to determine the cost for representation.
Does the mutual fund provider have its own proprietary funds? Mutual fund providers will benefit financially if you invest in their funds compared to another fund family. Because of this financial benefit, the provider may be biased towards there funds when making recommendations. If your investing with a specific mutual fund family compared to a provider of mutual funds, it is highly unlikely a fund family will ever recommend a fund from another mutual fund family.

Currently firms like Charles Schwab and Fidelity may charge a transaction fee when purchasing no-load funds of other mutual fund families.

Questions to Ask Before You Open an Investment Account

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Mutual Fund Educational Websites

MorningStar; Investment Company Institute
: NASAA: North American Securities Administrators Association
: Mutual Fund Education Alliance
: National Association of Investor Corporations
: U.S. Securities & Exchange Commission

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