Mutual funds are professionally managed investments that group investors' money to invest in a securities portfolio, like stocks or bonds. When you invest in a mutual fund, you're buying a share of the fund, equal to a portion of ownership in its holdings. As the fund's total value changes over time, the value of your investment also goes up or down. If the underlying stocks or bonds pay dividends or income, you receive that too.
Mutual funds accept orders for processing once per business day. Each fund issues a new Net Asset Value, the total value of held securities, typically between 5:00pm–7:30pm ET each day.
Unlike equities, mutual funds often have minimum investment amounts. As long as this minimum is met, any dollar amount can be invested.
Some mutual funds charge a percent of each purchase as a fee, often called a “front-end load” charge. These funds are not yet supported at DriveWealth.
Learn more in Creating an order.
Owners of mutual funds receive ongoing dividends and cash distributions as they are distributed by the constituents of the fund.
Learn more in the Corporate actions section.
Updated 8 months ago