Investor’s Guide to Choosing Stocks and Bonds

In over 25 years of business, our firm has never had an initial meeting with an investor who completely understood the total costs of the mutual funds they owned. The following article seeks to simplify the many complexities of mutual fund expenses so investors are able to discover the true costs associated with mutual fund ownership. To simplify this topic, six different costs will be evaluated: expense ratio, transaction costs (brokerage commissions, market impact cost, and spread cost), tax costs, cash drag, soft dollar cost and advisory fees.

A couple of generations ago investing in stocks meant buying shares of a big-name company like Ma Bell, keeping them forever and enjoying dividend income along the way. But the boom in mutual funds in recent decades has created legions of investors who’ve never owned an individual stock. Are they missing something?

In some respects, it’s easier to trade individual stocks now than in the good old days. A trade that once cost hundreds of dollars in commissions can be done online with a deep discount broker for $5 or $10. You can track prices, do research and place orders on your laptop, tablet or cellphone.

--

--

--

ProfitableInvestingTips.com is an informational website for men and women who want to discover trading & investing products and strategies and how to use them.

Love podcasts or audiobooks? Learn on the go with our new app.

$3000 installment loan bad credit

How can you tell when you are repaying the oxygen debt?

5 Reasons Real Estate Investing Is Overrated

What Happens When Gamestop Stocks Crash?

How You Can Make Money From Now On

The importance of downtime in trading

Roth IRA Rules: A Guide for 2020

Why The rich become richer?

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Profitable Investing Tips

Profitable Investing Tips

ProfitableInvestingTips.com is an informational website for men and women who want to discover trading & investing products and strategies and how to use them.

More from Medium

How to Pick Stocks

How To Know What Type Of Investor You Are

Reminiscences of Stock Operator -What to do , what not to do.

Costco Is The End All Be All Of Value Investors and Growth Investors