Mutual funds generally sell their shares on a continuous basis, although some funds will stop selling when, for example, they become too large. Mutual funds come in many varieties. For example, there are index funds , stock funds , bond funds , money market funds , and more. Each of these may have a different investment objective and strategy and a different investment portfolio. Different mutual funds may also be subject to different risks, volatility, and fees and expenses .
All funds charge management fees for operating the fund.
Some funds may also impose sales charge or loads when you purchase or sell fund shares. To figure out how the costs of a mutual fund add up over time and to compare the costs of different mutual funds, you should use the SEC s Mutual Fund Cost Calculator . Some funds may reduce their sales charges depending on the amount you invest in the fund. At certain thresholds, known as breakpoints , you may receive increasingly lower sales charges as your investment increases. Keep in mind that just because a fund had excellent performance last year does not necessarily mean that it will duplicate that performance.