Franmeister,It's good that you have been reading about mutual funds. The more you know about them the better. Depending on what numbers people use, you will find that 80% to 90% of mutual funds fail to give returns which beat the S&P 500 index in the long-term. These high failure rates are due, in part, to all of the fees associated with most mutual funds - including loads and expense ratios. An expense ratio of 1.08% is not very high as far as mutual funds go - but if you look at something like the Vanguard S&P 500 index fund with an expense ratio of 0.2% (yes, that's point 2 percent), then you're instantly making over $600 a year. You have to ask yourself if you think your fund can outperform the S&P 500 index by .88% a year... year after year. If you'd like to take a look at the Vanguard fund, go to http://www.vanguard.com or to go specifically to the S&P index fund, (you have to have Adobe Acrobat Reader)go here: http://www.vanguard.com/pub/Pdf/index.pdfI have no connection whatsoever with Vanguard. I just have friends who own it and I think it's a very good way to invest. I would be in it myself except that I like to pick my own individual stocks.Also, if you haven't seen it yet, the Motley Fool has a great area about mutual funds:http://www.fool.com/school/mutualfunds/mutualfunds.htmThis will tell you about all of the fees and other costs such as turnover associated with mutual funds.
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