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Mattplusness
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Buying shares in a mutual fund
#11255504 - 10/15/09 07:11 PM (14 years, 7 months ago) |
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I just got a student loan refund check, so I have a bit of money to work with. I am wondering, how I would go about buying into a mutual fund. I only want to put a couple hundred into it, just something to help off-set my interest on my loans.
-------------------- Quit smoking cigarettes August 23rd, 2008.
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Mattplusness
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Re: Buying shares in a mutual fund [Re: Mattplusness]
#11301378 - 10/22/09 05:46 PM (14 years, 6 months ago) |
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bump..
-------------------- Quit smoking cigarettes August 23rd, 2008.
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loggin shrooms
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Re: Buying shares in a mutual fund [Re: Mattplusness]
#11303999 - 10/23/09 12:58 AM (14 years, 6 months ago) |
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yeah like |I would totally invest it dude.
Maybe you could get some advice off the internet from abunch of stoners you haven't ever met.
Good idea
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Mattplusness
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Are you illiterate? I asked how I would go about buying into it. Not what should I put it into.
-------------------- Quit smoking cigarettes August 23rd, 2008.
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kmIL
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Re: Buying shares in a mutual fund [Re: Mattplusness]
#11310753 - 10/24/09 09:24 AM (14 years, 6 months ago) |
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I would not put it into a mutual fund at all if I were you. The value of these funds is that they are actually trusts of a diversified portfolio of securities. So you pay a small management fee (50 basis points-or half a percent) and you get the benefits of a diversified position in the stock market.
This was big 10-15 years ago, but now there are what we call Exchange Traded Funds, or ETFs. These trade on the market exchanges as normal shares that you can buy or sell just like any other stock. However, these are not shares of companies, these are shares, or rights to, a well diversified portfolio.
Take a look here to learn more about ETFs
http://finance.yahoo.com/etf
These are, imo, better than mutual funds because you pay much less in management fees. Also, they are easier to trade, you don't need to go through a BROKERAGE HOUSE which is what you would need to do to invest in a mutual fund.
However, do not invest in any ETFs which apply LEVERAGE. The volatility effects in a levered ETF wipe out profits.
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Band of Gypsys
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Re: Buying shares in a mutual fund [Re: Mattplusness]
#11311039 - 10/24/09 10:37 AM (14 years, 6 months ago) |
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I don't think you are going to find a place to set up an account to buy mutual funds or ETFs for a couple of hundred bucks. I think you are going to need a few thousand to get an account.
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Mattplusness
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i don't think so, because my parents bought $700 worth of stock of a mutual fund a while ago.
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MrBump
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Quote:
# Minimum investment requirement: For investors with limited funds (say, less than $1,000) who want to get started in the stock market, ETFs offer a cheap entrée. Through your discount brokerage account, you can buy one single measly share if you choose. In comparison, many index mutual funds have high initial balance requirements. (Those with lower requirements often charge higher fees.) # Ease of use: Here's the double-edged sword of ETF investing. They are easy to buy -- you simply need a discount brokerage account (and that's easy to get -- and cheap). Consequently, they're easy to trade. And trade and trade and trade.
http://www.fool.com/etf/etf.htm
looks like ETFs have some tax advantages too
http://finance.yahoo.com/etf/education/06
-------------------- If it weren't for the bloody corpses, I wouldn't have any corpses at all. There are two ways to get to the top of an oak tree: start climbing or sit on an acorn. Are you a carrot, an egg, or a coffee bean?
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Doc_T
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Re: Buying shares in a mutual fund [Re: MrBump]
#11315112 - 10/24/09 09:50 PM (14 years, 6 months ago) |
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Your bank can probably point you in the right direction. Mutual fund may or may not be the right choice for your time frame, btw.
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kmIL
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Re: Buying shares in a mutual fund [Re: Mattplusness]
#11326970 - 10/26/09 07:21 PM (14 years, 6 months ago) |
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Quote:
Mattplusness said: i don't think so, because my parents bought $700 worth of stock of a mutual fund a while ago.
I actually do not know what the minimum deposit amount is into a mutual fund.
However, you should note that mutual fund redemption can occur only at the completion of the trading day. Thats right, you cannot sell your interest in a mutual fund during trading!
With ETFs, however, you can.
The reason people used to buy into mutual funds was for portfolio diversification by a money management professional.
You can get the same diversification benefit with an ETF, which also consequently trades much easier than a mutual fund. Also, the fees are much less with an ETF compared to a mutual fund (10-20bp to 50-100bp).
I personally think ETFs are a great way to get into the market. You can invest in SPY (http://finance.yahoo.com/q?s=SPY), which is an ETF with the same portfolio weights as the S&P 500 index, and be 100% diversified.
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Mattplusness
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Re: Buying shares in a mutual fund [Re: kmIL]
#11332315 - 10/27/09 03:33 PM (14 years, 6 months ago) |
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very helpful post, thank you, i'm gonna look into them and see what's up
-------------------- Quit smoking cigarettes August 23rd, 2008.
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Shins
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Re: Buying shares in a mutual fund [Re: Mattplusness]
#11332800 - 10/27/09 04:40 PM (14 years, 6 months ago) |
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I've never been a fan of mutual funds due to fees etc.
but theres one that i'm seriously thinking of investing in.
this http://www.ephasiafunds.com/
"Euro Pacific Capital, Inc., Halter Financial Investments L.P. and the management team created a registered investment advisor called Euro Pacific Halter Asia Management, Inc. (“EPHAM”). EPHAM is launching the EPH China Fund, a mutual fund based on Peter Schiff’s investment philosophy focused exclusively on investing in China and its Special Administrative Regions. The EPH China Fund is a value-oriented strategy with a long-term focus on financially sound, stable but growing, dividend-paying Chinese companies."
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