For over 30 years, the Charles Schwab Corporation has been a company that particularly targets small investors. Follow these steps to invest in Schwab mutual funds.
Invest in Schwab Mutual Funds
Know your ABCs. Before you invest in any mutual fund, acquire a general knowledge of investing. Read about mutual funds on an online learning center, such as The Investment FAQ (see the Resources section below).
Take caution. Mutual funds are relatively safe investments due to their diversity. However, they are subject to risk. Schwab mutual funds are not guaranteed to earn profits and you can lose your investment.
Determine your "Investor Profile" on the Schwab Web site (see Resources below). Here, you can view conservative to aggressive funds. The easy-to-read pie charts break down the percentages of a fund's stock, bond and cash allocations.
Determine your goals. Mutual funds are usually long-term investments. If you want quick cash, you may want to invest elsewhere.
Find out if you must pay to play. Since teams of skilled professionals manage mutual funds, investors may have to pay fees and costs. Charles Schwab offers many no-load funds, but not all are free.
Get the prospectus, which outlines a fund's goals, risks and performances. The Schwab prospectuses are available on the Web site.
Do your research to pick the fund that is right for you. Research the fund's past performances, and view the annual and biannual reports on the company's Web site.
Contact Charles Schwab to open a Schwab One Account. This is a necessary first step for making a Charles Schwab investment.
Pay attention to the details. Once you've invested, monitor your portfolio. You can access Schwab 24 hours a day via telephone or the Internet.
Relax. Mutual funds are not constant, so don't let market fluctuations stress you. This a long-term investment, so remember the big picture.
- Invest wisely--choose a fund that fits your goals.
- Beware of added costs. Depending on your investment, you may have to pay handling fees.
- Visit the Schwab Web site for the most recent information on minimums.
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