M utual Funds make it possible for almost anyone to invest in several different stocks and or bonds for much less than it would cost to buy the stocks or bonds individually. Mutual fund investors benefit from economies of scale since mutual fund managers generally invest several millions of dollars at a time. O f course, these advantages are not free. Mutual fund sponsors make their money by charging fees. Mutual fund investors can expect to pay some or all of the following costs.
Funds usually pay an annual management fee to the fund sponsors.
Funds must also pay for the costs of record keeping, clerical assistance, and other operating expenses. Some funds that advertise no-load still charge these fees. Top of page Tip List L arry Elkin gives this list of tips on pg. Find an asset allocation that stands a good chance of achieving your goals, yet is not so risky that you are likely to abandon it along the way. If you are investing jointly with your partner, make certain you both agree on the strategy and goals.