How to Buy & Sell Mutual Funds

Video Transcript

"Hello, my name is Mark Griffith. This is a very brief introduction into how to buy and sell mutual funds. Mutual funds are a form of investments where lots of different investments have been packaged together. And therefore, what this means is. That you are saved a lot of trouble. But you have different kinds of trouble. You need, as ever, to do your research. And you need to use a lot of time with financial magazines and newspapers. To check on different mutual funds, to find out what their returns are. Typically, different funds invest in different things. Many funds might be a mixture of shares in companies. A little bit of treasury bonds stuffs and corporate bonds. There might be some precious metals. There might be even be land, buildings, this kind of thing. So you need to learn out each fund and decide what makes, suits you. In terms of risk. If you're reasonably young and you can afford. Effectively to lose money before your retirement. You might want to chose a riskier package. If you're older, you might want to chose a less risky package. Just remember to find out about the actual fund and how it runs. First of all, how is it assessed by those in the industry. Compare it with something like the S & P 500. In terms of, on your return, is it better or worse than the market. For example, a fund like Mc Cellan, the average is about 9% return. A little bit more than 9% return a year on a ten year average. And this is quite good. Only extracts one% over all for it's costs. Check the costs, check how the funds are run. And check what people in the industry and people in the financial press say about the different fund managers. Another thing to consider, is how easy it is to get in and out of the fund. Again, sometimes there are costs. And sometimes there aren't. As ever, shop around. Find what's available. Find the level of risk you are comfortable with. Find the level of industry involvement you are comfortable with researching and learning about. So you have some idea of what your fund is doing with your money. And then, when you feel absolutely ready. Go ahead and good luck."