Direct Mutaul Fund investing and Brokerage Houses - Tilted Forum Project Discussion Community

arch13 · 04-28-2005, 01:00 AM

So now that I have signed a contract for a salary for the first time in my life, I actually have predictable income.
This is a first for me and I know that it means a more disciplined investing / saving stratgey.

In that vein, I have two question that I was hoping someone would know that answer to.

1) Once upon a time, most mutual funds and ETF funds would sell you shares directly via mail. For example, I own several Federated funds, and purchase my shares through the mail from them. I just fill out the order form and send a check. No brokerage fee's whatsoever. Just the fund expense fees if applicable (Rarely)
Do most mutual funds still do this?
If so, where would one find a list of contacts for the companies that manage these funds?
For example, say I was interested in a midcap blend fund from Fidelity. Who do I contact to buy this directly from the fund, instead of through a broker? (<----just an example)

2) I've decided on a reasonable $200 savings per month. then each three months I take 1/2 the saving balance and make a single trade order with a brokerage. Keeps equity trade fee's to a minimum by not making it monthly. That said, should I go with a local discount trade house like TDwaterhouse with actual offices in my city, or simply go with someone like sharebuilder.com or ameritrade.com for their low fees on the basis that their is no reason to stay local?
Staying local seems to build long term relationships, while online has lower trade costs per equity trade. What are your thoughts?

eribrav · 05-01-2005, 10:22 AM

1. I think if you went to the company websites you could find their phone numbers and open the account by phone. Maybe buy Barron's or other financial publications, they would have the ads which should have contact info.
I know that Vanguard sells direct to consumers. They're an outstanding, low cost fund family you sshould consider.

2. Do you mean you're going to be buying a slug of mutual fund shares each time or are you talking about trading something else, like stocks? If it's a direct invest mutual fund it won't matter. If you mean acquiring shares of stock, then the DRIP (dividend re-investment programs) make sense. Honestly though, for the amount of money you're talking, you should probably stick with buying no-load fund shares. You just don't have a big enough pool yet to be buying individual equities.

rubicon · 05-27-2005, 07:52 AM

If your company offers a 401K with access to good investment products, I'd put as much there as you can. Balance out with an IRA and/or brokerage account.

Scottrade offers no-fee IRA accounts and no-fee buys/sells for loaded and no-load funds. You can buy on-line, phone, or mail.

04-28-2005, 01:00 AM	#1 (permalink)
arch13 Loves my girl in thongs Location: North of Mexico, South of Canada	Direct Mutaul Fund investing and Brokerage Houses So now that I have signed a contract for a salary for the first time in my life, I actually have predictable income. This is a first for me and I know that it means a more disciplined investing / saving stratgey. In that vein, I have two question that I was hoping someone would know that answer to. 1) Once upon a time, most mutual funds and ETF funds would sell you shares directly via mail. For example, I own several Federated funds, and purchase my shares through the mail from them. I just fill out the order form and send a check. No brokerage fee's whatsoever. Just the fund expense fees if applicable (Rarely) Do most mutual funds still do this? If so, where would one find a list of contacts for the companies that manage these funds? For example, say I was interested in a midcap blend fund from Fidelity. Who do I contact to buy this directly from the fund, instead of through a broker? (<----just an example) 2) I've decided on a reasonable $200 savings per month. then each three months I take 1/2 the saving balance and make a single trade order with a brokerage. Keeps equity trade fee's to a minimum by not making it monthly. That said, should I go with a local discount trade house like TDwaterhouse with actual offices in my city, or simply go with someone like sharebuilder.com or ameritrade.com for their low fees on the basis that their is no reason to stay local? Staying local seems to build long term relationships, while online has lower trade costs per equity trade. What are your thoughts? __________________ Seen on an employer evaluation: "The wheel is turning but the hamsters dead" ____________________________ Is arch13 really a porn diety ? find out after the film at 11. -Nanofever

05-01-2005, 10:22 AM	#2 (permalink)
eribrav Junkie Location: upstate NY	Hope this helps 1. I think if you went to the company websites you could find their phone numbers and open the account by phone. Maybe buy Barron's or other financial publications, they would have the ads which should have contact info. I know that Vanguard sells direct to consumers. They're an outstanding, low cost fund family you sshould consider. 2. Do you mean you're going to be buying a slug of mutual fund shares each time or are you talking about trading something else, like stocks? If it's a direct invest mutual fund it won't matter. If you mean acquiring shares of stock, then the DRIP (dividend re-investment programs) make sense. Honestly though, for the amount of money you're talking, you should probably stick with buying no-load fund shares. You just don't have a big enough pool yet to be buying individual equities.

05-27-2005, 07:52 AM	#3 (permalink)
rubicon Stop. Think. Question. Location: Redondo Beach, CA	If your company offers a 401K with access to good investment products, I'd put as much there as you can. Balance out with an IRA and/or brokerage account. Scottrade offers no-fee IRA accounts and no-fee buys/sells for loaded and no-load funds. You can buy on-line, phone, or mail. __________________ How you do anything is how you do everything.