Use the
Fund Selector to search for a fund by criteria you select.
While most direct funds are sold without any sales charges or loads, some may charge a low initial fee, usually 1%-3%.
Depending upon the fund company, you may obtain basic investment advice.
You can invest in a direct-sold mutual fund by completing an application
and submitting it along with a check for your investment. At that time,
you can also establish an Automatic Monthly Investment plan, or indicate other
services that you are interested in, such as the ability to invest over
the telephone, by bank wire, or online.
Once you make an investment,
you are a shareholder in the fund and you'll receive a confirmation of
each investment or redemption you make, along with periodic reports and
statements. The fund will also report dividend payments or capital gains
distributions and provide the tax status of your earnings.
It is important that you save your documentation from the fund company for tax
purposes.
With the advent of the Internet, direct
investors can now open and fund their mutual fund account electronically and can
also opt to receive their statements and financial documents electronically;
cutting down on paperwork. Many mutual fund companies have extensive websites
that offer shareholder services, including the ability to view account value as
often as desired.
