How to Invest Money in Market Mutual Funds

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Invest money in market mutual funds by consulting a stock broker about picking funds, visiting a discount broker or going to a timing service that will invest in funds for you. Consider the total charges for investing in different mutual funds with advice from a financial consultant in this free video on investments.

Part of the Video Series: Investment Tips & Financial Planning
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Video Transcript

Are you looking to participate in the long-term growth in the stock market? Hi, this is Roger Groh at Groh Asset Management. You may consider investing all or part of your money in mutual funds. Today, we're here to talk about mutual funds and just how you can go about investing your own money or the money of others in funds. There are several alternatives for you to be a buyer of a mutual fund. Number one, you can go back to your trusted stock broker and have a long discussion with them or with somebody within their firm who's very knowledgeable about funds who can help you pick the one that's right for you. After you've made the decision to buy, they'll take your cash and they'll invest it for you. There may or may not be a commission involved, depending upon the fund that you purchase and any fees that the broker might charge you. It might be worth paying the broker for their advice to help you find a fund that's right for you. Alternative number two: You can go to a discount broker, whether it's Schwab or Fidelity or...for two examples. You can pick any multitude of funds, either ones that they manage or ones that they subscribe to. And if you go to their websites, thousands of funds will come up in what you have the choice to invest. There's also a timing service available, generally, through those websites where you give them your money and they'll actually invest it for you. They'll pick the funds, not you. They'll pick the funds to buy. In the end, you open up an account at the discount firm, you give them your cash, and then either you buy the fund or you give it to somebody to buy for you. There's one other option: Many of the fund companies let you go directly to them. Now, is that cheaper? Not necessarily. Is it better? Not necessarily. It's just an option. It's something for you to consider. One major point to think about as you look at different funds are the total loads or charges that they have to you, the investor. You know, if you think about it, a fund that only charges a maximum of one percent total for all fees is going to net you more money than a fund that charges three or four or five percent or more. So be careful what the internal fund pays itself. Hope that helps. A little bit about investing in mutual funds, and I'm Roger Groh.


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