One big question investors face when buying
mutual funds is whether to buy directly from the fund or through
a broker, bank, or other financial adviser. There's not an
easy answer.
That's because some of the best-performing
funds are sold directly to investors and others are sold through
advisers. And, in some cases, funds that you can buy directly
from the sponsor are also available through advisers.
The big difference is that buying through
an adviser generally means paying a sales charge, which can reduce
what you actually earn on the fund in the short term. That charge
may be offset by your earnings if you hold the fund for an extended
period.
On the other hand, some experts point out
that if an adviser gives you the incentive or confidence to invest,
it may be worth the added cost.
