Mutual fund(index funds) investment practical guide?
Hi, I have been doing some reading about mutual fund investment. Specially about investing in low cost index funds and its investment. Now that I have some theoretical knowledge, I would like to start my investment. One problem I am facing is how to start. Like for stock, i can use robinhood platform to buy any stock listed in NYSE. Is there similar platform for Index funds. Of there are different platform for different funds(e.g. Vanguard, Charles and Swab) etc. How will i know which platform I should choose(e.g. for S&P 500). Where can i now about ratio of stock vs bond for balance funds. Will there be any hidden cost associated with it. etc. etc.
You can buy ETFs on robinhood
You can buy etfs on any approved broker , Robin Hood being the cheapest. But etfs because they have the least expense ratio
If you die and your assets go through probate because you can't name a beneficiary it is by far the most expensive broker. You can buy Vanguard ETF for free on Vanguard, and if you have over 100k in you account almost all brokers will give you some free trades.
mutual funds != index funds, never invest in mutual funds.
Never say never, Vanguard Admiral funds have the same underlying fund and fee as their ETF and can be more convenient. In fact you can call them and convert you fund units to ETF shares without any taxable event.
I was reading The Bogleheads' Guide to Investing. Btw what I am trying to say that buy low cost index funds. Not actively managed mutual funds. I guess buying low cost index funds is encouraged?
Just do wealthfront if you want to break your fear. You can’t screw it up and it will do what you want automatically
Dumb question, why not vanguard?
Vanguard is great. In fact I’d say it’s prob the best if you want to do what you’re thinking. But it’s on you to buy the correct funds
What have you been reading? If you believe in rule #1 you should not invest in mutual funds at all. For the platform, on etrade you can buy everything.
I was reading The Bogleheads' Guide to Investing. Btw what I am trying to say that buy low cost index funds. Not actively managed mutual funds. I guess buying low cost index funds is encouraged?