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Do you think buying mutual fund via on-line is better in many ways compare to traditional buying via agent?


Do you think buying mutual fund via on-line is better in many ways compare to traditional buying via agent?

Hugely better to buy without an agent.

The agent gets a commission. Either via a front end sales load (always a bad idea to pay that), or through your annual management fee, or sometimes through a fee you pay directly (this is the least bad choice, at least you know what the agent is making off of you). Plus the agent might direct you to funds where he gets a bigger commission but the fund has mediocre performance. Or, sell you a fund that is an in-house fund from his company (i.e. if he works for Merrill Lynch, he'll have a motivation to sell you Merrill Lynch funds over Fidelity).

The big drawback is you have to be able to choose the fund yourself. But anyone with a room temperature IQ should be able to figure it out with a few hours research.

All the best mutual fund families will sell to you directly - Fidelity, Vanguard, T.Rowe Price, Founders, etc.

yes, becasue people who offer them online have much lower overhead costs therefore offering much better benefits.

Yes.

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