I started my Roth IRA this year and found that Fidelity has some zero-commission / zero-fee mutual funds. It seems that they perform the same as VTI or SPY. Am I missing something, or is using Fidelity's free mutual funds the best route?
That fund from fidelity is just an index fund not a mutual fund. It's just like VTI except offered by Fidelity. Couple things to note when going with a fund is their net assets (tells you how effectively the fund can track the index) and trade volume (how easily can you sell it for a fair price in the market). Mutual funds are actively managed by professionals (hence the fee) theory should give better gains because the professional would supposedly know what to do, but in practice most mutual funds don't outperform the broader market.
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Read books and figure it out. I learned it that way. Common Sense on Mutual Funds – John C. Bogle, David F. Swensen The Bogleheads’ Guide to Retirement Planning – Taylor Larimore, Mel Lindauer, Laura F. Dogu, Richard A. Ferri, John C. Bogle The Investor’s Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between – William J. Bernstein, Jonathan Clements How to Think About Money – Jonathan Clements
Can you summarize the important takeaways?
The important takeaways: - buy individual stocks (mutual funds have lots of losers) - always buy on margin (use someone else's money!)