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What is a mutual funds and what is processer of this fund.?


What is a mutual funds and what is processer of this fund.?

A mutual fund is an investment tool that invests your money in a portfolio of different securities. There are many different types of mutual funds - some invest in stocks, some in bonds, and within those groups there are many different types to choose from, ranging the spectrum from very conservative (low short-term risk, lower long-term growth potential) to very aggressive (high short-term risk, high long-term growth potential).

By "processor," I assume you're asking where to invest in a mutual fund? There are two different ways to do this. The first way (which I recommend) is to buy directly from the mutual fund company itself. "No-load" fund companies work directly with investors, and have much lower expenses than "load" funds, which are sold by investment advisors/brokers, who charge a sales fee, which usually ranges from about 3-6% of your initial investment, and/or have higher ongoing management expenses.

Good no-load fund companies are Vanguard (www.vanguard.com), T. Rowe Price (www.troweprice.com), and Fidelity (www.fidelity.com). Their websites are vey easy to navigate, and their telephone customer service reps are very friendly and helpful if you have questions.

Good luck!

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