Friday, July 29, 2016

Mutual funds 101

Do you invest in mutual funds? Mutual funds are a great foundation for your investment portfolio. Mutual funds provide the added value of access to a wide variety of investments that are backed by expert money managers who aim to manage risk and maximize your returns.

How much do these added values cost? The ongoing cost to maintain a mutual fund is worked into what is called MER (Management Expense Ratio). MER isn't paid directly, but rather built into the cost of the mutual fund itself.

What does the MER pay for? The cost of the MER is paid out to three teams of experts. The mutual fund company, the mutual fund dealer and your investment representative. Within these teams, a portion of the fee is further dispersed to smaller teams within their umbrella. All of these teams work together to help you get the most out of your investments. 

MER costs can vary, but overall the minimal cost is well worth the benefits it accompanies. Watch the clip below and see for yourself.

Need extra help with your investment portfolio? Call us today and let us help you build an investment portfolio that will help you to achieve your financial needs, goals and dreams.