Should I Invest In Mutual Funds?


#1

In the process of putting a portfolio together and am having some issues putting everything together. I want a balanced portfolio that I contribute 500-600 into it monthly…

Since ETFs incur expense ratios every time you buy one, would it be more practical to just own a mutual fund?


#2

I think the first thing you should look should be your broker - if you are worried about trading commissions, you could have the wrong broker!

Another thing. For Vanguard’s funds, the initial 2/3k contribution may seem high, but you can make far smaller contributions after that - it doesn’t mean you have to contribute 2k/3k at a time!

This is a great reference point:

https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds


#3

I think you should go with a mutual fund to begin with, or go with a low-cost broker like: Vanguard, Fidelity or Schwab…

Vanguard is tax efficient, Schwab has killer customer service and Schwab has low investment requirement!


#4

I have just switched up my entire portfolio. I have gone from mutual funds to all ETFs now - finally…

ETFs give you a lot more options - you can buy and sell them qwhen you want. I like that, because I don’t feel a huge commitment and I have my options open. If I wanted to sell everything tomorrow and take the cash, I could - easily.

You probably don’t have the same flexibility with mutual funds…

Another touch-point is expenses. Obviously, ETFs are cheaper:


#5

Vanguard have a dividend re-investment programme - something to keep note of!


#6

For Vanguard, their ETFs are far more expensive than investor class mutual funds - something to be aware of…