Mutual funds are quickly becoming the investment portfolio of choice for many potential investors. Before choosing to invest in a fund, it is always best to learn about the different companies that sell them and the fee they charge for their services.

Insurance companies: Insurance companies should be the least considered option when buying a mutual fund. In most cases, insurance companies never directly sell these types of funds. They often combine the benefits of a mutual fund with other products. These combinations are offered to customers in the form of unit-linked products. Another disadvantage of purchasing such products from an insurance company is the sales burden that comes with these funds. A sales load can be defined as the fund’s commission paid to brokers. This can vary from 4 to 8 percent.

Banks: Another unfavorable place to buy funds is a bank. The disadvantages of buying a fund from a bank are the same as those of insurance companies. Even the banks prefer to sell the funds in the form of loaded funds. The inverters must support the input load or the output load. Another disadvantage is that banks do not offer much variety considering the investment objectives of the investor. Also, at most banks, there are no trained financial advisors who provide much information about the funds and their benefits to clients.

Stock brokers and investment advisers: One should approach these groups with caution. Some of these people tend to sell the funds loaded with high entry or exit costs. Even if an investment adviser offers a fund free of charge, he charges high fees for his financial service.

Discount stock brokers: These people are a good source to buy this type of fund. This is because these brokers are registered with different mutual fund companies and offer a wide variety of fund options to investors without any fees. Discount stockbrokers are mostly preferred over mutual fund companies due to the value of their experience in this sector and also the advice they offer clients is generally based on their investment needs.

Mutual Fund Companies – These should be the preferred source for buying a fund. These companies do not charge any transaction fees to customers who approach them directly.