how to invest in mutual funds

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Mutual funds are probably the best way to invest in the stock market. For both novice and experienced investors, mutual funds and exchange traded funds (ETFs) are probably the best investment vehicles to invest in the stock market.

about these funds

A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market stocks, or some combination of these investments. The portfolio is the combined fund holdings. Each share represents an investor’s proportional ownership of the fund’s holdings and the income generated from those holdings.

There are several reasons that make these funds such attractive investments:

  • Diversification:

    Full service brokerages are sold by firms and charge very high commissions.

  • Professional Management:

    These companies employ highly experienced professional managers to manage their individual portfolios. These managers get to know all the companies in their portfolio. They have tremendous computer and ancillary resources. Few individual investors have that level of sophistication.

  • economies of scale:

    These funds are able to take advantage of their economies of scale to reduce transaction costs associated with buying and selling. This translates into savings for the investors who are involved in the investment.

  • divisibility:

    Someone who invests only $1,000 to $5,000 may not start out buying a sufficient number of individual stocks to achieve sufficient diversification. With no-load mutual funds, there are no commissions to pay and an investor can start investing with as little as $1,000.

  • how to get started:

    Investors can invest in these funds directly with the mutual fund family. However, it is far better to buy a fund from a discount brokerage firm that handles many different families of mutual funds. (TD Ameritrade, Charles Schwab, and Scottrade are three good options.) This enables the investor to trade or upgrade their mutual fund holdings among different mutual fund families by placing orders with their discount broker. Trading can be done online with a very user friendly trading platform.

  • Rebound Mutual Fund Trader:

    It is a strong trading system that consistently outperforms the S&P 500. In fact, recently members of this trading system Doubled my money in just 32 months. When fully invested in, the Rebound Trading System consists of 7 no-load mutual funds or exchange traded funds. The average holding time is currently running at around 97 days. This system only trades twice per month and takes less than 30 minutes per month to trade. This trading system is currently generating an annualized rate of return of approximately three times that of the broad market indices.

Contact me to get started on the way to double your money in next 3 years: www.reboundtrading.com,

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