Re: help needed
[ QUOTE ]
So how do you go about purchasing index funds?
[/ QUOTE ]
Most brokers have a mutual fund info center (click the mutual fund link on scottrade). You can do basic research on mutual funds there.
[ QUOTE ]
Do they have a ticker symbol just like a stock?
[/ QUOTE ]
Yes, most funds have a 5 letter symbol.
[ QUOTE ]
Also, what fees are associated with index funds? I didn't realize there were any fees other than the commision fee. To collect the fees do they simply take the money out of the net worth of the investment?
[/ QUOTE ]
All funds collect a management fee which is taken out of the assets under management and reflected in their daily NAV (Net Asset Value = Price).
You should focus on no-load, no transaction fee (no broker commission) funds.
Funds also have other fees (related to fund expenses) that also are taken out before NAV calculations. You should read thru a fund perdpectus for a full understanding of how this works and what is typical.
[ QUOTE ]
So I may focus some of my money on some individual stocks, as you suggest.
[/ QUOTE ]
As a good rule of thumb, if you are intent on putting in an appropriate amount of time, you should be prepared to spend at least 1Hr/week/stock you hold + 2Hr+/week additional research.
|