How to Buy Mutual Funds?

Posted by Grace under Investing on August 1, 2016

Learn how to buy mutual funds today in this simple step. Start investing in mutual funds easily by following this easy guide.

Many mutual fund investors makes money every year and most of the time, mutual fund investing is their full time income. Many people are interested in investing in mutual funds. The big questions raised, how to buy mutual funds?

Buying mutual fund shares is one great way to diversify your assets especially if you are buying stock equity funds. There are different types of mutual funds you can buy today. It is easy to purchase mutual fund shares especially if the mutual fund companies allows you to open a account online.


Is today the right time to buy mutual funds? If I will start investing, what are the best mutual funds to buy? We will discuss these topics in this page.

Things Needed: When investing in mutual funds, you need investment capital of course. Decide how much money should you invest in mutual funds. Also, if you prefer to buy shares online, you need an email address and mobile phone for confirmations.

Procedures on How to Buy Mutual Funds

Here is the step by step procedures on how to buy mutual funds. This guide applies to where you are now. Whether you’re in United States, Canada, Australia, United Kingdom, Asia or any part of the world.

how to buy mutual funds guide

Image Credit: Jonathan McIntosh via CC 2.0 Flickr – Invest in Sharing. A step-by-step guide on how to buy mutual funds by

Step 1. Choose Mutual Fund Type.

There are different types of mutual funds. When choosing mutual fund type, you need to know if the fund type is suited in your risk profile. That’s the reason why you need to know your risk appetite. If you are an aggressive investor, you need to choose equity or index fund wherein these funds are invested purely on the stock market.

Many newbie investors are asking questions, what mutual funds to buy, the answer to that question is simple. First analyze your risk profile and invest according to your risk appetite. Assuming you know already your risk appetite, and you knew that balance mutual fund is the right type of fund for you. Then, continue step 2.

Step 2. Knowing the Best Performing Mutual Fund Types

Don’t just buy mutual funds, know the top performing mutual fund type and make a further research from which companies belongs that particular fund.

Step 3. Open a Brokerage Account

You can easily start buying mutual fund shares when you have a broker. I want to mention any mutual fund companies here. Say for example, you can start buying mutual funds through Vanguard, Fidelity, Charles Schwab, eTrade, Scottrade Merill Edge, Tradeking, etc. See the list of mutual fund companies in United States here.

Related: Where to Buy Mutual Funds?

Once you created your brokerage account, you can simply fund your account and start buying mutual fund shares online.

Summary on How to Buy Mutual Funds

  • Before you start investing in mutual funds, check if it is the right investment vehicle for you.
  • Your risk tolerance is your guide when choosing the type of mutual funds such as bond funds, stock equity funds, balance funds, money market funds, etc.
  • Find the best performing type of funds and buy funds with the right company.
  • Start buying mutual funds shares after you created your brokerage account.

Buying mutual fund shares is a wise decision. There are many benefits you can get when you invest money in a mutual fund. First is “diversification”. Second is “leveraging”. Leveraging because you don’t have to research about market. You just have to buy mutual fund shares and let the fund manager invest your money for you.

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One comment on “How to Buy Mutual Funds?

  1. Kaycee says:

    Home run! Great slguigng with that answer!

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