Chapter 2: Are Mutual Funds or ETFs Right for You? | Fidelity

In this video series, you will learn about whether investing in mutual funds or ETFs might be the right choice for you based on your current financial situation and goals. To open a brokerage account, visit: https://www.fidelity.com/open-account/overview To view more video in this series, visit: https://www.youtube.com/playlist?list=PLGKKmEmJDSiKoM-mD24lmaUeupHP62cDW To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Mary would like to buy a home within the next 5 to 7 years, but needs to save for a down payment and moving expenses first. She has a small amount of money to start with today, and plans on investing a set amount every month for a few years. Convenience is very important to Mary – she doesn’t want to be responsible for remembering to make an investment each month. So she plans on having the monthly investment automatically deducted from her checking account. A mutual fund allows Mary to set up a regular purchase program from her bank account. This automatic feature is not available on an ETF – with an ETF, Mary would need to manually place buy orders for each trade. Since Mary is going to invest a fixed amount of money each month, she may want to consider a mutual fund, as it provides the ability to invest specific dollar amounts. And at Fidelity, Mary has at her fingertips… Over 10,000 mutual funds from hundreds of fund companies, many with no transaction fees. Access to highly rated funds – including those rated four or five stars by Morningstar®¹, one of the industry’s most respected, independent experts on mutual funds… Research and insights from Fidelity, one of the leading investment management firms. Mary also understands that there will be market fluctuation and risk to her investment principal. After doing her homework on the many mutual fund choices available to her, Mary selects a fund whose investment objective and risk profile closely aligns with her investment objectives, risk tolerance, and time. She is excited to be on the road to home ownership. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 682198.2.0

Comments