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Best Brokers for Mutual Funds for March 2024

Review Updated
Matt Frankel, CFP®
By: Matt Frankel, CFP®

Our Brokerages Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Getting started as an investor can seem complicated. There's a lot of advice about which stocks to pick, how to balance your portfolio, how to avoid fees and more. But investing can be much simpler than that for most of us.

Mutual funds are a way to invest in the stock market without becoming an expert yourself. Professional fund managers do the hard work for you, and the nature of these funds significantly reduces your risk. That's because most mutual funds own hundreds or even thousands of securities.

We've reviewed dozens of the best platforms for mutual funds to help you decide which is the best fit for you.

There are a lot of options to compare, even on this page. It can be overwhelming! If you're looking for a place to start, here are some mutual funds brokers our experts recommend and why they like them:

Our 9 Best Platforms for Mutual Funds

Broker/Advisor Best For Commissions Next Steps
Fidelity Offer Image
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

No-transaction-fee mutual funds

Commission:

$0 commission for online U.S. stock and ETF trades, $0-$49.95 for mutual funds

Award Icon 2024 Award Winner
J.P. Morgan Self-Directed Investing Offer Image
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

App-based mutual fund investing

Commission:

$0 per trade

E*TRADE Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Diverse investment needs

Commission:

Commission-free stock, mutual fund, and ETF trades; other fees apply

Interactive Brokers Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mutual fund selection

Commission:

As low as $0 stock trades, lesser of $14.95 or 3% of trade value for mutual funds

Award Icon 2024 Award Winner
SoFi Active Investing Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mutual funds in an easy app

Commission:

$0 for stocks, $0 for options contracts

Merrill Edge® Self-Directed Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

No-transaction-fee mutual funds

Commission:

$0 for online stock and ETF trades

Award Icon 2024 Award Winner
Ally Invest Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mutual fund selection

Commission:

$0 stock and ETF trades

Charles Schwab Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Low costs and low mutual fund investment minimums

Commission:

$0 stock trades and for OneSource mutual funds

Vanguard Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Low costs

Commission:

$0 stock and ETF trades, $0-$20 for mutual funds

How to invest in mutual funds

The way you invest in mutual funds works a bit differently than investing in stocks. Specifically, mutual funds don't trade continuously. They price once per day after the market closes, and orders are processed overnight.

Fidelity
Open Account for Fidelity

On Fidelity's Secure Website.

Ratings Methodology

Our Rating:

Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Fidelity offers its highly regarded mutual fund lineup with no commission, along with more than 3,000 others with no transaction fee.

Fees:

$0 commission for online U.S. stock and ETF trades, $0-$49.95 for mutual funds

Account Minimum:

$0

Open Account for Fidelity

On Fidelity's Secure Website.

Award Icon 2024 Award Winner

Our Rating:

Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

One of the few brokers we've come across with a $0 mutual fund commission. The fact that you can manage your J.P Morgan self-directed and separate robo-advisor accounts under one roof is a nice plus.

Fees:

$0 per trade

Account Minimum:

$0

Special Offer

Earn a bonus up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account (retirement or general) with qualifying new money by 04/12/2024.

Open Account for J.P. Morgan Self-Directed Investing

On J.P. Morgan Self-Directed Investing's Secure Website.

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

An especially smart choice for investors who want to buy mutual funds and other types of investments. No transaction or commission fees for mutual funds. Shines with its robust lineup of no-load mutual funds. Also offers a fantastic trading platform, educational resources, and third-party research.

Fees:

Commission-free stock, mutual fund, and ETF trades; other fees apply

Account Minimum:

$0

Special Offer Circle with letter I in it. Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account.

Open and fund and get up to $1,000

Open Account for E*TRADE

On E*TRADE's Secure Website.

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Packs in more than 19,000 no-transaction-fee mutual funds. While it does charges a competitive commission for other mutual funds, the selection of funds is the real reason the company gets a spot on the list. Interactive Brokers offers more than 48,000 mutual funds in total.

Fees:

As low as $0 stock trades, lesser of $14.95 or 3% of trade value for mutual funds

Account Minimum:

$0

Open Account for Interactive Brokers

On Interactive Brokers' Secure Website.

Award Icon 2024 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

SoFi is a rare app-based investment platform that supports mutual fund investing, and offers investments, bank accounts, credit cards, loans, and more in a single easy-to-use platfom.

Fees:

$0 for stocks, $0 for options contracts

Account Minimum:

$0

Special Offer Circle with letter I in it. For new accounts: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%.

Get up to $1,000 in stock when you fund a new Active Invest account.

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Merrill Edge® Self-Directed offers thousands of no-transaction-fee funds. High-balance Merrill Edge® Self-Directed brokerage accounts also link up to other Bank of America accounts so you can qualify for the bank's Preferred Rewards program, which is the gold standard for loyalty banking rewards.

Fees:

$0 for online stock and ETF trades

Account Minimum:

$0

Award Icon 2024 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Offer access to more than 12,000 mutual funds, but none of them are no-transaction-fee funds. However, Ally Invest's industry-low $9.95 standard mutual fund commission helps cut costs. This makes it a good choice for investors who want to select any mutual funds they want without the constraints of a no-transaction-fee list.

Fees:

$0 stock and ETF trades

Account Minimum:

$0

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

We're big fans of Charles Schwab's proprietary mutual funds. Some have no expense ratio at all and have minimum investments of $100 or less. Clients also get access to thousands of no-transaction-fee mutual funds and a network of hundreds of branches for in-person help.

Fees:

$0 stock trades and for OneSource mutual funds

Account Minimum:

$0

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Vanguard is well known for its own low-cost index funds, but you can't invest in many commission free anywhere but Vanguard. In addition to its own standout offerings, investors can access thousands of other funds with no transaction fee.

Fees:

$0 stock and ETF trades, $0-$20 for mutual funds

Account Minimum:

$0

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Editor's Note: TD Ameritrade is transitioning to Charles Schwab

TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've removed TD Ameritrade from our best-of lists to align with this development. Here at The Ascent, you can trust that we're constantly evaluating our top broker picks to bring you current recommendations.

What are mutual funds?

A mutual fund is an investment vehicle that pools investors' money together to invest in a common purpose.

For example, let's say a technology-focused mutual fund receives $100 million in investor capital. Its managers would take that money and invest in a portfolio of technology stocks. If the portfolio rises in value, all the fund's investors mutually benefit.

Should you buy mutual funds through a broker?

It's important to point out there are two ways you can invest in mutual funds. You can open a brokerage account through one of the best brokers for mutual funds. If you're new to investing, check out our list of best stock brokers for beginners.

Alternatively, you can choose to invest in mutual funds directly through the companies that operate them. For example, let's say you want to invest in a T. Rowe Price mutual fund. You can simply open an account with T. Rowe Price and buy your mutual funds through the company.

There are some advantages to buying your mutual funds directly, and the biggest is avoiding commissions. Sure, many of the best brokers for mutual funds offer a list of mutual funds on a no-transaction-fee (NTF) basis. But there's no guarantee the fund you want to buy will be on the list. Buying directly typically avoids any type of transaction fees.

On the other hand, there is value in keeping all of your investments in one place. Many of the best brokers to invest in mutual funds have thousands of NTF funds. You can also buy and sell different types of stocks, bonds, and ETFs in a brokerage account. The best stock brokers often have other value-adding features as well, such as stock research, educational resources, and more.

Can you buy mutual funds online?

Many online stock brokers offer a selection of mutual funds customers can invest in, including index funds and actively managed funds. With low or no commissions, low fees, and a focus on low-expense-ratio index funds, online brokers can be a particularly affordable way to invest in mutual funds.

Most online stock brokers also let you invest in exchange-traded funds (ETFs), a newer way for investors to mutually benefit from bundled funds. Rather than a fund that actively invests pooled money into various stocks, an ETF is a group of securities bundled into a single entity that you can invest in like a traditional stock.

TIP

Buying your first stocks: Do it the smart way

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Are mutual funds right for you?

Mutual funds can put your investments on autopilot and take away the need to do extensive stock research. Mutual fund investing also adds portfolio diversification. After all, many mutual funds invest in hundreds, or even thousands, of different stocks or bonds. Your performance won't be too dependent on any single one.

Who should invest in mutual funds?

Mutual fund investing is best suited for:

  • Investors who want to leave the research and evaluation of stocks to someone else.
  • Investors who don't want to constantly monitor their investments. Mutual funds are designed for investors with a set-it-and-forget-it mindset.
  • Investors who want an all-in-one portfolio of stocks and don't want too much of their money dependent on any one company's performance.
  • Investors who don't want to worry about intraday fluctuations in the value of their investments, as mutual funds only trade once a day.

Some people see robo-advisors as a cheaper alternative to mutual funds, as they're also a hands-off way to invest. In this scenario, the robo-advisor's algorithms automate your investments according to your risk tolerance and other factors.

Should you invest in index funds or actively managed mutual funds?

There are two main types of mutual funds:

  • Actively managed: These funds employ fund managers to choose investments they expect to produce the best returns for investors.
  • Passively managed: These funds aim to track a certain benchmark index, such as the S&P 500.

Although these are both technically mutual funds, people often refer to actively managed funds as "mutual funds" and passively managed funds as "index funds."

The aim of actively managed funds is to beat the performance of an index. Fund managers make decisions to buy and sell stocks with the money in a fund based on their expectations of a stock's (i.e., a company's) performance.

That's not to say actively managed mutual funds will always beat their respective benchmarks. In fact, numerous studies have shown the majority of actively managed mutual funds don't do any better than index funds. Some have excellent track records, but it's important to do your homework before investing.

Passively managed funds are also referred to as "index funds" because they are set up to mimic the performance of an entire stock index. For example, an S&P 500 index fund would own the stocks of all 500 companies in that index, in weightings that would produce returns that match those of the index.

Once you've decided mutual fund investing is right for you, the next step is to decide which of the two categories is the better fit for your financial goals. (Hint: For many investors, index funds can be a safer bet. Actively managed funds tend to have significantly higher fee structures than index funds, so it's important to be sure you're getting your money's worth.)

How much do mutual funds cost?

If you're looking for the best broker to buy mutual funds, there are three potential costs to be aware of.

Commissions

Most brokers have done away with commissions for stock trades, but that's not the case for mutual funds. And the costs can vary dramatically. Our best brokers for mutual funds have standard mutual fund commissions that range from $9.95 to $49.99.

As we touched on earlier, most (but not all) brokers offer certain mutual funds on an NTF basis. This means you won't have to pay commissions as long as the fund you want is on your broker's NTF list. Many brokers easily offer thousands of NTF mutual funds. This should be a top priority when selecting which broker is best for mutual fund investing.

Sales charges

Also known as "loads," some mutual funds charge an additional fee when you buy or sell. You may get charged a percentage of the purchase amount when buying, known as a front-end load. Others charge a percentage when you sell, known as a back-end load. Both are becoming less common. It's generally a good idea to avoid funds with sales charges, as there are thousands of great mutual funds without them. Brokers typically have a search or screener function that allows you to filter for "no-load" mutual funds.

Expense ratio

This is the ongoing cost of mutual fund investing. A fund's expense ratio is its total fee structure, expressed as a percentage of assets under management. For example, a 1% expense ratio means that if you have $10,000 invested in the fund, you'll pay $100 in fees each year. To be clear, you don't directly pay mutual fund fees (you won't get a bill). Rather, funds collect their fees from the pool of money they manage.

Almost all mutual funds have expense ratios. This is how they pay their managers, cover administrative costs, and pay for other necessary costs of doing business. However, expense ratios can vary dramatically, even among funds with similar portfolios and investment objectives. As such, it's important to compare them before you select a fund.

FAQs

  • Investors can buy mutual funds directly from the fund provider. Many mutual funds have a direct plan where investors can buy mutual funds (usually through their website), without a brokerage account. Investors may also buy a mutual fund through their workplace retirement account, such as a 401(k) or 403(b).

  • Investors should look for a mutual fund broker that has a strong industry reputation, reliable track record, a wide range of mutual funds, low-cost mutual funds, and educational content and tools. Investors should also look to see what other fees the mutual fund broker may charge, up-to-date security standards, as well as a trading platform that best suits their trading needs.

  • Most mutual funds charge fees in the form of expense ratios that are accounted for in the price of the mutual fund. Expense ratios can be as high as 2.5% every year, but there are many high-quality mutual funds with very low expense ratios. Some mutual funds also charge sales commissions, also known as loads. Again, there are many well-known mutual fund companies that don't charge loads, and this is becoming more common in the industry. These fees combined cover costs for the mutual fund company, such as 12b-1 fees (marketing costs) and other routine operating expenses.

Our Brokerages Expert