Where to Invest Online with Mutual Funds

[indieangler]

Hello,

New here, and very new to investing in general. I've been reading a few books and have decided I'd like to start investing a little bit in mutual funds. I'm an American citizen but currently live in the UK and probably will live here for another year or two, before returning to the U.S.

I currently mainly use my US Bank of America account. I know that Bank of America has online investment options, but didn't know if I was better off trying Fidelity Online or eTrade or something of the sort, for mutual funds. I'm looking to invest around $2,000 - $4,000 USD for time being.

Anyone have any thoughts or suggestions on using Bank of America online vs. other online investment providers? Thanks!

[disneysteve]

For mutual funds, I think it is best to invest directly with the individual fund companies: Fidelity, Vanguard, Janus, Oppenheimer, whoever. They all maintain websites and offer online account access and online transactions. I've got accounts with a few companies.

If, however, this is a retirement account like an IRA or Roth, it can be easier to stick with one company. In that case, check out a discount broker that offers free access to a variety of funds. Charles Schwab is one company that I know does this as I've got an IRA with them. Others, actually me included, use Vanguard or Fidelity for retirement accounts.

[indieangler]

Thanks for the advice! Anyone else have any input?

[jIM_Ohio]

T Rowe Price is my preferred mutual fund provider. 100% no load, low fees, excellent selection and performance.

[Scanner]

I use a mix of Price and Janus funds.

I wouldn't use mutual funds from a bank and here's why - they tend to generally be "loaded" funds. Either front-end or back-end loaded so you are going to pay a commission going in or coming out.

This was how it was about 4 years ago when I checked - maybe it's changed though.

[Scanner]

http://www.columbiafunds.com/Products+And+Performance/Mutual+Funds/Overview.htm?productID=0000219

Here - I did a little research for you and it appears things haven't changed.

I would generally stay away from funds that issue Class A, B, Z shares and all that. Those are loaded funds and they don't perform any better than no-load funds. The only thing you get is to talk to a financial advisor who probably gets the commission.

Truth is mutual funds were never meant to be that complicated - Class A, B, Z shares - heck my blood type is less complicated than that and you don't know where the money is going.

[Ima saver]

I have been with vanguard mutual funds for about 20 years and I am very happy with them. I would just call their direct number and get a prospectus from them. I use the Index 500 fund and the Star fund.

[krayziebone33]

For mutual funds, I think it is best to invest directly with the individual fund companies: Fidelity, Vanguard, Janus, Oppenheimer, whoever. They all maintain websites and offer online account access and online transactions. I've got accounts with a few companies.

If, however, this is a retirement account like an IRA or Roth, it can be easier to stick with one company. In that case, check out a discount broker that offers free access to a variety of funds. Charles Schwab is one company that I know does this as I've got an IRA with them. Others, actually me included, use Vanguard or Fidelity for retirement accounts.

This is real good information.

[disneysteve]

If, however, this is a retirement account like an IRA or Roth, it can be easier to stick with one company. In that case, check out a discount broker that offers free access to a variety of funds. Charles Schwab is one company that I know does this as I've got an IRA with them. Others, actually me included, use Vanguard or Fidelity for retirement accounts.

I wanted to elaborate on what I said earlier.

Where to invest depends on a few factors. If you plan to stick primarily to index funds, staying with a single fund company works well. Vanguard is well-known for this, for example.

If you plan to choose actively managed funds, however, you don't want to restrict yourself to a single fund company as no one company has the best funds in multiple asset categories. If you pick just Fidelity funds, for example, you aren't going to get the top funds in each area. I've got a healthcare fund from Vanguard, a real estate fund from Cohen and Steers, a gold and precious metals fund form Oppenheimer, a small company value fund from Heartland, etc. But all my index funds are from Vanguard.

So when deciding where to invest, you first have to think about what type of investments you are planning to make.

[Ima saver]

Good point! I do not have all my funds at Vanguard, just my Index funds. I also have funds at Janus, American Century and AIM!

[kv968]

Good point! I do not have all my funds at Vanguard, just my Index funds. I also have funds at Janus, American Century and AIM!

AIM's expense ratios are too high IMO. However if they have something you like...

[disneysteve]

I would just call their direct number and get a prospectus from them.

No phone call needed. Vanguard has all of their prospectuses downloadable at their website, vanguard.com.

[Aleta]

I have mine at Vanguard. Their fees are lower than most of the other companies and especially if you go with the index funds. I also have other fudns with Vanguard so it makes it pretty easy for me to transfer funds when I need to. It had become a form of simplicity for me. I have mostly had good experiences with their agents. They are as helpful as they can be. They can't advise you but they can direct you If you can do one stop shopping it is easier and simpler to do but some people because of their employers have to go with companies that they have their accounts with.

[PRICEPLUS]

I have my funds at T Rowe. I use asset builder and money is automatically taken out of my checking every month. The service is excellent and my funds have done fairly well!

[LuxLiving]

For a beginning investor I like Fidelity's Four-In-One (FFNOX) - which tracks four of the major index funds in one fund. The fund's target asset allocation is approximately 55% in Spartan 500 Index Fund, 15% in Spartan Extended Market Index Fund, 15% in Spartan International Index Fund, and 15% in Fidelity U.S. Bond Index Fund.

Stocks n' bonds covered - Easy-peasy! This equals broad diversification! YEAH!!

And $2500 gets you in under an IRA - w/an expense ratio of .21%. There is however a $10 annual fee IF you keep the balance under $10,000.00.