There are many factors to consider when selecting mutual funds for a portfolio.

Question

There are many factors to consider when selecting mutual funds for a portfolio. One factor is the fees associated with owning the mutual fund. For the mutual fund that you have selected for your portfolio, download and review the prospectus. In your initial post, provide answers to the following:

What are the fees associated with owning this mutual fund?

What are the annual fund operating expenses?

Do you believe the fees are reasonable given your experience with finance?

Provide an explanation supporting your findings.

Explanation / Answer

1. Buying a mutual fund is like buying shares of company, but when a person buys a mutual fund gets a diversified financial instrument. This helps him/her to spread the risk of investing in a share. There are many mutual funds available in the market. These funds can be categorized on the basis growth fund, income fund, and balanced fund. The following factors should be considered before buying a mutual fund.

1. How it will help to achieve objective of portfolio?

2. Actively managed or an index fund.

3. Fund

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