How to Invest in Vanguard Mutual Funds. Even if you are a new investor, putting your savings into Vanguard Mutual Funds should be an easy and rewarding process. Mutual funds feature diversified portfolios of stocks that are consistently adjusted, which limits your financial risk and ensures that your money is receiving the greatest return.
Things You'll Need
- Financial calculator
- Computer with Internet access
Get to Know Your Company
Trust that you are investing with an experienced company. Vanguard has been in business since 1975 and handles over $950 billion in mutual funds.
Prepare to do research. Vanguard is one of the largest mutual fund companies in the world and offers over 170 funds to choose from.
Determine Your Financial Goals
Decide if you are seeking a long-term investment. Although Vanguard offers many mutual funds that will provide short-term gains, the company's overall philosophy focuses on long-term rewards.
Know your limits. Although mutual funds are considered a low-risk investment, low risk does not mean no risk. Only invest funds that you can afford to have tied up in the event of a market dip.
Understand the fees and taxes associated with each mutual fund. These factors can greatly affect how quickly you can meet your financial objective.
Make the Investment
Go to the homepage for Vanguard Mutual Funds, which will be your source for research as well as investing.
Seek out the "Research Funds and Stocks" bar. Click on this link to be directed to an area that will help target your search for an ideal fund.
Browse the funds that Vanguard offers. Since there are so many, it's a good idea to limit your search based on your investment objectives.
Take into account the fees associated with each mutual fund, which will affect your overall rate of return.
Choose the mutual fund that best matches up with how much you can afford to invest and your ultimate financial objectives.
Open an online account through Vanguard. The entire process can be completed online or by downloading and mailing in the necessary application form.
Invest in the mutual fund you have chosen.