Investing in mutual funds also
includes the fact that you have to pay your broker a lot of fees.
Some mutual fund brokers will make it seem to you that the higher
fee you pay, the higher return you will achieve on your investment.
This is NOT true. All the broker will be doing (if you pay a higher
fee) is take greater risks with your money, which could have devastating
consequences. In order to avoid paying high fees to your broker
and to maximize your ROI (return on investment), you should consider
the different classes of mutual funds to purchase and which class
is the right one for you.
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The first modern mutual fund
was created in 1924 in Boston, Massachussets. Known as Massachusetts
Investors' Trust, the fund went public in 1928 and eventually
led to the founding of MFS Investment Management firm. Some of
the innovators involved in this transformation included Richard
Paine, Richard Saltonstall and Paul Cabot.
By the year 1929, there were 700 closed-end
funds with 19 open-ended mutual funds. Thanks to the 1929 stock
market crash, closed-end funds lost their popularity and small
open-end funds started to skyrocket. In 1933, the Securities and
Exchange Commission (SEC) was created to protect the investments
of consumers in mutual funds. Mutual funds must be registered
with the Securities and Exchange Commission (SEC) before they
can be invested into. (View
Full Article)
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