Top tips for investing in a mutual fund
Share and Follow


(NewsNation) — Time is money, and money is investable.

One investment strategy is to purchase a mutual fund.

What is a mutual fund?

A mutual fund is an investment strategy in which you pool your money with that of other investors to buy stocks, bonds and other securities, according to Fidelity Investments.

Investors who purchase a mutual fund own part of the fund’s assets. If you sell a security the mutual fund invests in at a higher price than what you originally paid, you make a profit, called a net capital gain.

You can also earn money from mutual funds when a security pays interest or dividends. A security is a broad term for assets that hold monetary value.

How to invest in a mutual fund

To invest in a mutual fund, you must first set up an online brokerage account. Common financial service companies that manage these accounts include Fidelity Investments, Vanguard, Charles Schwab and Ally Invest.

Then, you’ll need to deposit money into your account to be able to purchase a mutual fund.

Research the funds to ensure they align with your goals, considering the fund’s performance and risks.

Track your portfolio and adjust your strategy as needed.

Top tips for investing in a mutual fund

  1. Does the mutual fund align with my long-term financial goals? During the research stage, identify your goals and ask yourself if what you’re about to invest in makes sense for you. Experts at Bankrate suggest beginners invest in a low-cost S&P 500 index fund.
  2. What is this fund’s long-term performance? You’re investing because you want to gain in the long run. Take the fund’s past performance into account to help determine whether its success will continue.
  3. What are the fees associated with buying a share in a fund? “Remember that if two funds have the same investment performance, the one with the lower fees will leave their investors better off,” Bankrate said.
  4. Don’t forget about tax season. “Consider the fund’s tax-efficiency and whether you’re going to hold it in a tax-advantaged account — like your 401(k) — or not,” according to Charles Schwab, a financial services company.
Share and Follow
You May Also Like
George Clooney admits to past drug use but says 'it was never a big issue for me at all'

George Clooney Acknowledges Previous Drug Use, Stating ‘It Was Never a Major Problem for Me’

George Clooney has shared insights about his youthful drug experiences, admitting to…
Surprising stomach symptom linked to autism, according to new study

New Research Finds Unexpected Gut Symptom Associated with Autism

Children diagnosed with autism could be at a greater risk of debilitating…
Meghan giggles as model 'stumbles on the catwalk'

Meghan Laughs as a Model Trips on the Runway

Meghan Markle’s presence at Paris Fashion Week has stirred up some chatter,…
Motorists lift medical helicopter to rescue woman after crash injuring 3 on Sacramento highway

Drivers Work Together to Lift Helicopter and Rescue Woman in Sacramento Highway Crash Involving Three

A medical helicopter crashed on a highway in Sacramento, critically injuring three…
California's Hollywood Burbank Airport will have no air traffic controllers Monday evening, FAA warns

FAA Warns of Temporary Lack of Air Traffic Controllers at California’s Hollywood Burbank Airport Monday Evening

BURBANK, Calif. — Southern California’s Hollywood Burbank Airport is bracing for impacted…
Southwest jet abruptly dives to avoid midair collision, passengers say

California Airport Affected by Air Traffic Controller Shortfall

() One of California’s busiest airports was left with no air traffic…
Trump says he's open to health care deal with Democrats as shutdown hits Day 6

Trump Open to Health Care Negotiations with Democrats Amid Day 6 of Shutdown

WASHINGTON (AP) — President Donald Trump said Monday that he’d be open…
Espinoza Martinez, alleged Chicago leader of Latin Kings gang, charged with putting bounty out for Border Patrol's Gregory Bovino

Espinoza Martinez, suspected Chicago head of the Latin Kings, accused of offering reward for Border Patrol’s Gregory Bovino

ByABC7 Chicago Digital Team Tuesday, October 7, 2025 3:50AM Espinoza Martinez, an…