Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.
Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
And since there’s no real management going on, its fees are lower than for an actively managed fund.
» Want to know about passive investing involving robo-advisors?
If you contribute to an employer-sponsored retirement account, such as a 401(k), there’s a good chance you’re already invested in mutual funds.
You also can buy directly from the company that created the fund, such as Vanguard or Black Rock Funds.
Learn more about this automated way to manage your portfolio When considering how much to invest, remember that patience pays.
A good rule of thumb is you should feel comfortable leaving the money untouched for at least five years to ride out any market downturns.
But each of these options may have a limited choice of funds.
Most investors would be wise to buy from an online brokerage, many of which offer a broad selection of mutual funds across a range of fund companies.