Where to Buy Mutual Funds

Most people look forward to investing in mutual funds with an aim to derive the maximum out of the money available with them. However, only a few know about the sources from where they can buy mutual funds. It is better to know more about such sources and their fees before moving ahead on the road to investment. The various sources and their distinguishing features are enumerated below.
Banks
It is not advisable to buy mutual funds from banks as they sell loaded funds. A load means that a sales charge needs to be paid to the seller of the fund and this can range from 4% to 8% of the money invested. You can well imagine that if you have to pay 8% extra at the time you buy, it might take you more than a year to earn that 8% just to break even and only after that you can hope to get some return. Also while buying from a bank, you would be required to pay either an entry load or an exit load. Moreover, you will not get a wide spectrum of investment opportunities if you deal with a bank. Banks also lack suitable investment advisers who can provide pertinent information regarding the various funds and their merits and demerits.
Insurance Companies
You should not buy mutual funds from an insurance company as they do not sell directly, and often combine other products along with the funds. Such type of a combination is usually referred to as a unit-linked product. Moreover, the funds sold by insurance companies are also loaded as in the case with banks.
Investment Advisers And Stock Brokers
These groups should be approached with caution as the funds they sell are heavily loaded involving high entry or exit costs. Some investment advisers might try to sell you a no-load fund, but their financial services will carry high fees.
Discount Stock Brokers
You can buy mutual funds from these brokers as they are registered with various companies. Moreover, they provide various options without any load. You should prefer them over mutual fund companies as they have knowledge and expertise in this field, and offer valuable advice to the investors as per their specific investment needs.
Mutual Fund Companies
If you approach these companies, you will not be charged any transaction fees. This should be one of your preferred investment options.
Basically, you need to find out the sources from where you can buy without having to pay any load charges whether front-end or back-end. Today many companies are offering a wide range of no-load mutual funds in every investment class that you can imagine. But you must read the fine print before investing your money.
Prior to investing in mutual funds, you must try and get familiarized with the various sources from where you can buy them.