CJ, Amsterdam -- (SBWire) -- 11/02/2010 -- Credi Corp Securities: Mutual funds are a popular investment vehicle because their diverse nature lends to a more balanced financial portfolio. Investment companies sell shares of the fund and invest the proceeds in a variety of assets under the direction of a professional money manager.
Here at Credi Corp Securities we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.
Where to Buy Mutual Funds
Mutual funds may be purchased from registered advisers at: Banks/trust companies; Brokerage firms; Credit unions/caisses populaires; Life insurance brokers and agents; Mutual fund companies and; Mutual fund dealers. Mutual fund and life insurance companies typically sell only their own funds, while banks and dealers offer a variety of different products.
How to Buy Mutual Funds
Credi Corp Securities: There are several important steps to buying mutual funds. First, work with an adviser to create a financial plan and determine how much can be invested in mutual funds. Investigate several mutual fund options that fall within the amount available for investment. Consider: the amount; required to buy into the fund; the desired length of time to invest; associated fees (see below); current and past fund performance, rather than future projections and; the types of investments held within the fund: stocks, bonds, etc., and the level of risk involved. After completing the application form, keep a photocopy for future reference. Watch the mail for a prospectus, which provides information about the company managing the fund. Read and save all mutual fund statements, asking for clarification when required.
Buying Mutual Funds: No Load Funds vs. Front Load or Back End
Credi Corp Securities: The fees associated with mutual fund investment are a source of confusion for many new investors. Some mutual funds require an upfront payment to buy into the fund, although this has become increasingly unpopular.
Many companies now use a back end load fee, or contingent deferred sales load (CDSL) fee; when the investor needs to sell the fund, a penalty applies based on the length of ownership.
Others still offer no load funds. Do not confuse no load funds with no fees; all mutual funds include a fee called the Management Expense Ratio (MER) to cover administrative costs, the mutual fund manager's salary, legal fees, and other incidental expenses.
About Jonathan Moore
Jonathan Moore is a Senior Vice President at Credi Corp Securities, with experience in the Financial Services industry spanning over 25ys and 3 Continents. Jonathan currently directs the Portfolio Risk Management Group after moving from the Equity Derivatives Research Group 3yrs ago. He has a PhD in Experimental Particle Physics and has been working in the alternative investment industry since 1992. His interests include climbing, mountain biking and running and he recently completed the Marathon des Sables, a 142-mile endurance footrace in the Moroccan Sahara.
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Credi Corp Securities is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments, statements and opinions are of the authors. For more information go to http://www.credicorpsecurities.com
Credi Corp Securities: Quick Reference Guide to Buying Mutual Funds
Mutual funds are a popular investment vehicle because their diverse nature lends to a more balanced financial portfolio. Investment companies sell shares of the fund and invest the proceeds in a variety of assets under the direction of a professional money manager.