You can greatly reduce the error rate on your tax returns by e-filing. As a bonus, you can generally receive your refund in three weeks.
Mutual funds incur costs that must be paid from fund assets. These costs are incurred through marketing, advisory fees, accountants’ fees, legal fees, custodial fees, etc. Simple transactions such as buying, selling and exchanging shares can be costly.
Mutual funds can be classified into several sub-groups: types of funds, open-end vs. closed-end and share classes. An investor who chooses to invest in mutual funds should understand the various differences between funds to ensure that their goals and objectives are inline with those of the fund.
Investing in individual common stocks can be an expensive endeavor. Commissions to the broker on every buy and sell can add up over time. Many investors instead choose to invest in mutual funds based on the misconception that mutual funds do not charge commissions. In reality, mutual funds, even funds that are no-load funds, can be costly to buy, sell or simply hold.
Once an investor makes a decision to purchase shares of a mutual fund, all aspects of the fund must be fully understood. Under the Securities Act of 1933, new issues of a security must be registered with the Securities and Exchange Commission and a prospectus must be provided to all purchasers of the new issue.