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What's everyone's thoughts on mutual funds that have transaction fees tied to them when buying? I hate paying the $49-$59 to buy additional shares with Ameritrade or Schwab. Thanks for your thoughts!
IMHO, we have so many brokerages with NTF funds, there aren't many funds you have to pay commission. And for those you need to buy absolutely be it FAIRX or COBYX or whatever, you can buy directly with company.
I cannot make an argument for ANY fund that justifies paying commission.
Like just about everything in life, it pays to do the math. The share classes that have a TF have cheaper E.R.s. It depends on how much you're going to invest, and what's the minimum holding period you're anticipating.
The other issue with TF is that you cannot economically ease into a fund... if each transaction costs $75 (per Fidelity) then you're better off buying a larger number of shares each time... Yes, some of them have "automatic investing" which eliminates the fee, but I've never wanted to use that feature.
Comments
Regards,
Ted
http://www.kiplinger.com/printstory.php?pid=6990
I cannot make an argument for ANY fund that justifies paying commission.
Paying TR = Driving drunk
that's my story and I'm sticking to it