Oct 012018
 

By Anastasia

Saving your money is not enough. If you want to grow your wealth, you also need to invest your money.

There's no shortage of investment options that you can use to achieve your financial goals.

One of these is investing in mutual funds.

According to Investopedia, a mutual fund is an investment vehicle where several investors come together and pool their money, with the aim of investing in securities such as bonds, stocks, money market instruments and so on.

Mutual funds are managed by a professional money manager, whose aim is to use his/her experience to drive capital gains and income for the investors.

Mutual funds are a great investment option for a number of reasons.

They are professionally managed, therefore they minimize risk by allowing investors to make money even if they have little understanding of investment in securities.

They also provide a great way for investors to diversify their investments.

Additionally, mutual funds allow even small investors to get into huge investments.

This explains why mutual funds are such a popular investment vehicle. Statistics show that in 2017, 44.5% of United States households had invested in mutual funds.

Before investing in a mutual fund, it is important to understand the fees and expenses associated with the fund and their impact on your investment.

Fees are a natural part of the personal finance world, and therefore it would seem logical to assume that everyone understands fees.

However, most people do not understand the fees associated with mutual funds.

One such source of misunderstanding is the difference between the management fee and the management expense ratio.

The confusion has been fueled by the uneven disclosure of some ETF and mutual fund providers.

In this article, we will look at the difference between the two, as well as other fees and expenses associated with mutual funds.

The information about ...read more

Source:: Understanding Management Expense Ratios (MERs), Management Fees and Other Costs

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