Mutual Fund Myth #1:
Closed-end funds are often confused with, and mistakenly called, mutual funds.
Closed-end funds, ETFs and mutual funds are types of investment companies.
Mutual Fund Myth #2:
"Short-term capital gains distributions can be offset with capital losses -- both short-term and long-term."Short-term capital gains distributions cannot be offset with other capital losses (long or short) and offers no economic value to mutual fund shareholders.Saying that ETFs are cheaper than mutual funds is like saying that mutual funds outperform ETFs (or vice versa).
Some ETFs are cheaper than mutual funds and some ETFs are more expensive than mutual funds. Vanguard offers actively-managed funds and index funds. They also offer exchange-traded funds. A mutual fund load is a fee charged when an investor makes a transaction in fund shares. Loads may be charged upon purchase of fund shares (front-end load) or upon sale of fund shares (back-end loads). These loads are paid to the broker for selling the fund
Mutual Fund Myths | Things you should know about Mutual Funds | Mutual Funds India Info
Posted by Admin Labels: ETF, mutual fund basics, mutual fund myths, mutual funds, short term capitalBefore You Invest in Funds - Guidelines for Mutual Fund Investments
Posted by Admin Labels: ETF, investments, mutual fund basics, mutual fundsBefore you invest in mutual funds, it is important to understand the structure of the investment and the fees associated with the investment.Before you invest in mutual funds, you may want to get to know your other investment options. ETFs and closed-end funds are similar to mutual funds, but have several key differences. It is important to understand these key differences before you invest in a mutual fund.The first thing to understand about mutual fund fees is that, whether you see the mutual fund fees or not, you pay them. However, before you invest in mutual funds, you should know which fees are optional. Yes, some fees are not charged by all funds. Learn more about mutual fund loads and 12b-1 fees before you invest in mutual funds. Maybe you can "opt out" of these charges.For a comprehensive breakdown of fees associated with mutual fund investing, read. Before you invest in mutual funds, learn more about the advantages, and the so-called disadvantages, of mutual fund investing.
