Your Step-by-Step Guide to Investing in Mutual Funds to Save up Money for Any Long-Term Goal
Mutual funds are among the most popular investment vehicles in the United States.
In fact, data from Statista show that about 44.8% of American households own mutual funds. And if the assets invested in all mutual funds based in the U.S. were to be totaled, it appears that investors have put a whopping $17.71 trillion in these investment funds.
Its popularity isn’t really that surprising though considering the perks that come with putting money in mutual funds. It’s an easy way to invest in a combination of bonds and stocks.
What’s more, it’s a great way for people to save up money in the long run to fund your retirement and other goals. Here’s a step-by-step guide to help you get started.
Opening a Brokerage Account
The first thing you’ll need to invest in mutual funds is a brokerage account. You can choose to open one that’s affiliated with your current bank so you can link your accounts and transfer money to buy mutual funds faster.
Brokerage firms typically offer mutual funds they manage themselves as well as a variety of other mutual funds. As of 2018, there are reportedly 9,599 mutual funds in the U.S. managed by a wide array of financial institutions.
Choosing Funds to Buy
Given the thousands of options you have, it can be overwhelming to pick which mutual funds to invest in. Fortunately, most brokerage firms would provide you with some general information about mutual funds while some would even rate them to guide your decision-making.
Of course, it’s also recommended that you do research on individual funds and come up with a shortlist of those that meet your criteria. Use rating websites like Morningstar, Lipper, and Zacks to gather more information.
Making the Investment
With financial institutions offering their services online, trading mutual funds have never been easier. You can buy and sell assets through your brokerage firm’s website or app.
To buy a specific mutual fund, you need to take note of its trading symbol. For example, one of the current top mutual funds in the U.S., Fidelity Contrafund, is traded under FCNTX.
Monitor Your Portfolio
Once you’ve made your investments, the only thing left to do is leave it to grow over a period of time. While its value would likely go up and down in the coming months or years, you’d want to focus on the gains your mutual funds would accumulate over decades.
More in Finance
How Does Brad Pitt Spend His Fortune?
Brad Pitt, the Hollywood heartthrob, has long been a household name for his acting prowess and good looks. With a career...October 8, 2023
Will the History of Inflation Surge Repeat Itself?
After a tumultuous few years amid the pandemic, many people are beginning to wonder about inflation. With prices on the rise...September 28, 2023
Why Celebrities Are Making a Splash in the Liquor Industry
The world of spirits and liquor is experiencing a shift in trends as celebrities are making their foray into the market...September 21, 2023
AMD vs. Intel: The Ultimate Showdown
When building a new PC, the age-old choice between AMD and Intel remains a cornerstone. Like the classic macOS versus Windows...September 15, 2023
A Day in the Life of Superstar Bella Thorne
When striking the delicate balance between a thriving career and nurturing relationships, Bella Thorne demonstrates that she’s no different from the...September 5, 2023
Tips to Help You Get Satisfying Tax Refunds
Income tax season is upon us again and for most Americans, it is a daunting time. For the financially literate, however,...August 25, 2023
Want Your Business Venture to Succeed? Convince Gen Z
If you are an entrepreneur or business owner, you know the importance of understanding your target audience. In today’s consumer landscape,...August 17, 2023
The Internet Apocalypse: How Serious Is the Threat?
The internet has become an essential part of our daily lives in today’s interconnected world. From communication to commerce, information sharing...August 9, 2023
Successful Celebrity Side Gigs You Didn’t Know About
Celebrities often surprise us with their multi-faceted talents. While they are renowned for their primary careers in acting, music, or sports,...August 2, 2023