Thread: help needed
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Old 07-23-2005, 05:08 PM
Sniper Sniper is offline
Senior Member
Join Date: Jun 2005
Posts: 704
Default Re: help needed

So how do you go about purchasing index funds?

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Most brokers have a mutual fund info center (click the mutual fund link on scottrade). You can do basic research on mutual funds there.

Do they have a ticker symbol just like a stock?

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Yes, most funds have a 5 letter symbol.

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?

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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.

So I may focus some of my money on some individual stocks, as you suggest.

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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.
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