money market yields: What is A Mutual Fund ?

2008-04-28 12:01:18

( Legal )



Shopping for the highest yields for your investment? One option for highest dividends yields are mutual funds and money market yields.

What are mutual funds and money market yields?
Years ago you could only gain access to top-tier investment management at a professional level if you were an institution or very rich.

But all that changed with the birth of the mutual fund.

Today millions of individuals throughout the nation own mutual funds and are familiar with money market yields.

What do mutual funds provide?
- the benefit of having your money managed professionally
- many other features that don’t come without a cost.

This should help you understand:
- the kinds of expenses and fees involved when you invest in mutual funds
- help you work more effectively with investment professionals when you compare funds best suited to your investment portfolio.

Fees and Expenses could cover:
- hand-on proprietary research
- ongoing investment professional service
- special fund updates
- toll-free support
- annual prospectus updates
- fund information available on the internet
- transaction confirmation statements
- shareholder reports which may be annual or semi-annual
- quarterly account statements
- professional portfolio management
- continuous portfolio monitoring
- security transactions that take place within a fund.

Kinds of Fund Costs
When you invest in a fund, the prospectus must include a table called “Fees and Expenses” which will help you compare expenses and fees associated with your and other mutual funds.

This should detail both directly and indirectly what you might have to pay for each kind of share. These figures are based on different holding periods. Of course, the actual cost could be different since these figures change over time. If your investment includes multiple funds – each one will have its own table.

Exchange Fee
This is a fee which is levied in order to defray administrative costs involved in exchanging funds with the same family and same share class. Often you may be allowed some free exchanges before this fee is imposed.

There is also a redemption and account fee to be considered.


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