Check out FINRA's ETF, ETN & Mutual Fund Expense Analyzer
Because fees and expenses can vary widely from fund to fund, Place Trade Financial offers a Mutual Fund Expense Analyzer to help investors compare sales, loads, fees, commissions, and other fund expenses. These expenses can impact returns depending on the investment amount, holding period, and characteristics of specific funds that share classes.
Download this FREE Guide to Understanding Mutual Funds, provided by the Investment Company Institute.
Learn all about Mutual Funds, what they are, what the different terms and definitions mean and about buying mutual funds at Place Trade with an advisor or online.
Get a free copy of the Guide to Understanding Mutual Funds and compare funds and fees with FINRA's free Mutual Fund Expense Analyzer.
Place Trade offers access to thousands of mutual funds as well as Exchange Traded Funds (ETFs) to help clients diversify their portfolios.
Can I buy Mutual Funds in my IRA? Yes, you may purchase mutual funds in your IRA or other retirement account including a Traditional IRA, Roth IRA, Rollover IRA, SEP, SIMPLE, 401(k) or individual 401(k). Mutual Funds may also help to diversify your 529 or other college planning accounts.
Why buy Mutual Funds? There are many reasons why investors choose mutual funds. From ease of trading, diversification and competitive returns, mutual funds are an attractive investment for many of our clients.
What are Mutual Funds? Mutual funds are a compilation of stocks, bonds and individual securities determined by a fund manager; with many investors pooling their money together in a joint investment. The individual investments of each fund are dependent upon the overall objective of the fund. When these investments rise or fall in value, you gain or lose with them.
Mutual funds may be open-end; in which new shares are continuously issued as more investors choose to buy them or closed-end issuing a fixed number of shares.
Place Trade Financial offers a wide variety of mutual funds - to see all of them, log into your account and click on the Mutual Fund Mall Link or call us today at 1-800-50-PLACE or 1-919-719-7200 to see if we offer a specific fund that you are interested in. (Most likely we do!)
Important Information on Mutual Fund Investing
Mutual Fund Mall
The Mutual Fund Mall allows you to view an extensive selection of Mutual Funds. Explore by fund family or by alphabetical index.
To help in your selection of Mutual Funds, Place Trade Financial offers a variety of online resources. You may define your requirements and create profiles, by customizing your fund search with specific criteria, Mutual Fund investment objectives and parameters.
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Mutual Fund Mall Definitions and Terms
Mutual Fund Fees and Expenses
When choosing a mutual fund, a fund's prospectus lists all fees charged according to the organization of a particular fund. Be sure to read any fund's prospectus carefully to determine the amount of invested money actually going towards the purchase of shares.
What types of Sales Charges & Fees do Mutual Funds Charge? Sales Charges are fees paid by an investor when purchasing or redeeming shares of an invested fund. As dictated by law, these fees may not exceed 8.5% of the amount invested.
- No-load Funds - Funds with no sales charge.
- Front-end Load Funds - Funds that charge a fee with the purchase of shares. This fee is subtracted from the invested amount before shares are purchased with the remainder being used to purchase actual shares.
- Back-end Load Funds - Funds having a sales charge assessed upon the sale of shares and subtracted from the proceeds.
- Level Load Funds - Typically, these funds have an initial sales charge of 1% of the investment; the fund 12b-1 fees are usually 1% for the life of the investment.
- Redemption Fees - Additional fees deducted from the proceeds of the sale when the investor sells shares back to the fund (not all funds charge these fees). These fees are often dependent upon the length of time the shares have been held by the investor.
- Contingent Deferred Sales Charge - A sales charge that decreases over time dependent upon the length of time that the shares are held. Over time, this fee will eventually disappear.
- No Transaction Fee Funds: Place Trade does not offer no-transaction fee funds at this time. Place Trade does not take special payments to sell specific funds in place of charging our clients a fee. We believe that this is in the best interest of our clients. We believe that there is no such thing as a free lunch.
12b-1 Fees are assessed to cover additional expenses not directly related to the sale of shares. These expenses include advertising, printing, toll-free phone lines, compensation for brokers who sell shares and distribution of sales literature. These charges are limited by the FINRA to 0.75% per year, but the actual amount, from nothing to the maximum, is set by the fund itself.
In accordance with SEC regulation, there are limits as to the maximum sales load a fund may charge. With no-load funds, 12b-1 fees cover sales expenses. If a fund charges 12b-1 fees and other service fees, a maximum sales load of 6.25% is permitted. If a fund has 12b-1 fees but no other service charges, the maximum sales load is 7.25%. Sales loads of up to 8.50% are allowed for funds that charge neither service nor 12b-1 fees. (Please note that Place Trade does not offer any funds with such high sales loads. We can get them if you want them but believe we may be able to find quality funds with with better overall returns/yields to fit your needs.)
It is very important to read and understand all of the fees that your mutual fund may be subject to. It is also important to know whether you are buying a "Preferred" or Special Fund from a firm when it may only be preferred or special because the firm is receiving a kick back or a little extra special payment of some kind to sell one fund family over another - regardless of what is right for you.
The same goes for 'free" mutual funds as well as free (commission free or no load) Exchange Traded Funds (ETFs). It may be "free" but you are still paying for it by paying fees inside of the fund that can take away from your total return. A firm may receive special payments from fund managers or companies as well as charge higher expenses or take a piece of the spread in cases of other securities. All of these charges make your "free" trade more expensive than you may realize.
Place Trade does NOT receive any special payments or have any relationship where the firm receives additional payments for offering one firm over another. Nor does the firm offer any "free" transactions when actually receiving additional payments or a piece of the spread on any security. (Place Trade believes in actually doing what is right or their clients not just padding the bottom line at your expense.)
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As with any investment, there is risk. Investors should consider these risks, the investment objectives, charges and expenses outlined in the prospectus carefully before investing in any Mutual Fund. For a prospectus containing complete information, contact the fund you are considering or your broker at 1-800-50-PLACE. Read the prospectus carefully before you invest. Past performance is no guarantee of future results. Principal value and investment returns will fluctuate with changes in market conditions. An investor's shares, when redeemed may be worth more or less than their original cost.