Friday, June 3, 2011

Type of Investments: 2 - Mutual Funds, ETFs, and CEFs

In the next part of my series on the different types of things that we can invest in I talk about the various fund types...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.


One more "anti" comment on mutual funds especially for dividend investors. Even though they own companies that issue dividends? They may not necessarily pass them on to the investor. To be honest I have no idea where they go. I have called several mutual fund help numbers looking for this information and never got a straight answer. The one thing I do know is that I never received any directly.

ETFs and CEFs? They pass them on to the individual investor. So seeing as this model portfolio is about sustainable income I'll be going with those.

As investors though we should be aware of how mutual funds work. I barely touched upon it here and there are other moving parts to them. Why is it important to be aware of them even if we don't plan to invest in any? They are very predominant in 401k plans. In the four company plans I have had access to the vast majority of choices were in mutual funds.

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