How Mutual Funds are Bought and Sold

Mutual Fund Bullet Tour Page 7

Shares of mutual funds can be bought and sold:
  • directly through the companies that manage the funds
  • through discount or full-service brokers
  • through an employer-sponsored retirement plan.
  • You should never be charged a transaction fee when you deal directly with a company that manages a fund.
  • You should never be charged a transaction fee when you purchase shares in an employer-sponsored retirement plan.
  • You may have to pay a small transaction fee if you trade through a discount broker.
  • You will pay a full commission if you trade through a full-service broker.
  • Mutual fund shares are purchased and redeemed at their NAV, as described above.
  • Automatic investments and withdrawals are an option available with many fund companies. However, these options require establishing an account with the fund company.

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