Investor Education

Investor Education
Investor education

Implications of Investing

Buying a mutual fund

Once you’ve researched mutual funds of interest and are ready to buy, consider how you’ll go about making your investment. There are several ways to purchase shares in a mutual fund.

In this section:

If you already have a brokerage account with a company, you can add a new mutual fund to your list of investments or even move some of your current assets into mutual funds. A brokerage account is a convenient way for many individuals to keep all their investments under one roof and see a compiled statement. On the other hand, brokerage firms may charge various administrative and other fees for services.

You may purchase Wasatch Funds from a professional financial planner or broker. Or, you can open an account directly with Wasatch Funds.

Most mutual fund companies allow you to purchase mutual fund shares directly from them. If you choose to buy direct, the mutual fund company will send you statements and other fund literature (as opposed to receiving them from your brokerage firm that may also include information about your other investments with them). When you buy a mutual fund direct, you also receive information about your fund in a more timely manner than if you buy through a brokerage account. For example, if a fund opens for a limited time, direct shareholders may receive the notice more quickly than shareholders that bought through a brokerage account.

Wasatch Funds allows you to purchase mutual fund shares directly. To open an account, click here.

Dollar cost averaging is a technique that helps reduce market risk, “balancing out” your investment through good market times and bad, by lowering the average price per share you pay for a particular fund.

By purchasing a fixed dollar amount of a fund at regular intervals, regardless of share price, you end up purchasing more fund shares when prices are low and fewer fund shares when prices are high. This reduces your exposure to market volatility and can result in a larger investment value over time than if you invested the same amount of money in one lump investment.

To help you take advantage of dollar cost averaging, Wasatch offers an Automatic Investment Plan (AIP) that allows you to make regular purchases of a Wasatch Fund automatically from your checking or savings account.  You select the date, you select the amount.  You can choose an AIP when you open an account, or, use our Account Maintenance Forms to change your existing Wasatch account.

*Dollar cost averaging and automatic investment plans do not ensure that you will make a profit and does not protect against loss in declining markets.