Best Mutual Fund Companies



Investing in mutual funds is a popular option for building long-term wealth. With mutual funds, you essentially pool your money with other investors to purchase stocks and bonds. Mutual funds can be a way to keep your investment portfolio diversified, which helps to minimize risk.
For help choosing the best mutual fund company for your investing goals, read our consumer reviews of the most popular mutual fund companies today.
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Compare Reviews for Top Mutual Fund Companies | ||||||
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American Century is a privately-held investment management company. It focuses solely on money management. The company was founded in 1958 and is headquartered in Kansas City, Missouri with other offices around the world. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers a diverse mix of investment solutions, including mutual funds, ETFs, college savings and personalized portfolios. Choose from self-managed accounts and portfolios. Some minimum investment amounts apply. | Chat with a ConsumerAffairs decision guide Live agent | |||||
Offers online, self-directed investments. Free, unlimited stock, ETF and option trades. $0 minimum investment for self-directed options. No annual account fees. Provides research-backed insights. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers complex wealth management, retirement planning, investment management and other financial services. Choose personalized planning from an advisor, robo-advising or a hybrid. No account fees or minimums to open an account. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Multinational bank based in Canada. More than 1,100 branches across the Eastern U.S. Offers checking and savings accounts, credit cards, personal loans and mortgages. Numerous sign-up bonuses and relationship banking perks. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Investment management company with more than 30 million investors. Access financial advice, investments, retirement tools and market insights. Choose a personal financial advisor, all-digital advice or DIY investing. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Provides a wide array of financial services. Products include insurance, annuities, investments, banking and cash management. IRAs, mutual funds, stocks, ETPs, bonds, alternative investments and UITs available. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Provides investment services, trusts, estate and retirement planning, brokerage accounts, wealth strategies, insurance and annuities. Transactional brokerage accounts have no minimum, but some other accounts do. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
T. Rowe Price offers low-cost and no-load mutual funds as well as other financial and investment services. The company has options for both small and large investors. It has been in business since 1937. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers broker services, retirement planning, financial advising and specialized solutions. $0 commissions on online trades. No trade or account minimums. Upfront pricing listed online. Fractional shares cost as little as $5. | ![]() | Chat with a ConsumerAffairs decision guide Live agent |
What are mutual funds?
Mutual funds are a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds and other assets. Investors buy shares in the fund, which represent their portion of ownership.
Mutual funds are professionally managed by fund managers and offer a way to invest in a variety of asset classes without needing a lot of money to start. (While there are some funds with high minimum investments, there are also funds that require no minimum investment.)
Types of mutual funds
There are several types of mutual funds, including equity, fixed-income, balanced and specialty funds. When choosing a mutual fund, ensure the type aligns with your investment goals, risk tolerance and timeframe.
- Equity funds, the largest group of mutual funds, are made up of stocks and can provide capital growth, steady dividends or both, depending on which stocks the fund is invested in.
- Fixed-income funds, also called income funds or bond funds, consist of investments in both government bonds and private companies. They are designed to provide regular income to shareholders and typically offer a higher yield than certificates of deposit (CDs) or money market funds, but have varied risk levels.
- Money market funds consist of short-term debt instruments, like Treasury bills, and are one of the safest mutual fund options. They usually offer a larger return than most savings accounts but a smaller return than many CDs.
- Index funds are referred to as passively managed funds because they include the same investments as the market and are thus not actively managed. There are many different indexes with different profiles, such as large-cap stock, small-cap stock, growth stock, value stock and international stock.
» MORE: What is a good investment?
How much do mutual funds cost?
Expect to pay fees for the service of having your assets professionally managed, as well as administrative costs. In 2022, the average expense ratio for both actively managed and index equity mutual funds was 0.44%, according to the Investment Company Institute.
Loads vs. no-load funds
A “load” is a sales charge or fee imposed by certain mutual funds when you buy or sell shares of the fund. It is a specific fee separate from the transaction cost.
Not all mutual funds charge loads, and these are known as no-load funds. However, no-load funds can still charge fees that are not sale loads, as well as operating charges.
Other loads to know about include:
- Front-end loads: Front-end load funds charge investors at the time they purchase shares in the mutual fund.
- Back-end loads: Funds with a back-end load charge shareholders when they sell shares in the fund. In some cases, a back-end load is only charged if investors sell shares within a certain timeframe.
- Level loads: Also known as a 12b-1 fee, a level load is an ongoing annual fee charged by certain mutual funds to cover distribution and marketing expenses.
How are mutual funds managed?
Professional management can be both an advantage and a drawback of mutual funds. Mutual funds allow smaller investors to access professional management in ways that would likely be cost-prohibitive outside the fund; however, some advisors debate whether professionals are any better at choosing investments than laypeople.
Look at the fund’s mandate and the management tenure to fully evaluate the benefits of the fund’s management.
- Mandate: You don’t want to buy a fund focused on a single industry when you want a diversified portfolio. To ensure a fund is being managed in a way that suits your goals, read the fund’s mandate, then look at its holdings to see if the managers are fulfilling that mandate in their investments.
- Management tenure: Find out how long the fund’s managers have been in place. This information should be in the fund’s prospectus, but you can also ask any salesperson. Ideally, the manager will have been in place for several years with a successful track record.
FAQ
How do I buy shares in a mutual fund?
One option for buying shares in a mutual fund is to set up a self-managed brokerage account online, which allows you to buy and sell stocks, bonds and mutual funds without the assistance of a financial advisor. Another option is to buy mutual fund shares directly from the fund manager or with the assistance of a financial advisor.
What are classes of mutual fund shares?
Mutual funds are classified as Class A, Class B and Class C. These classes determine which fees you will pay and when. For example, Class A mutual funds have a one-time fee charge, while Class C shares can charge an annual fee. Regardless of which share class you buy, you’ll be invested in the same things.
Who can invest in mutual funds?
Anyone can invest in mutual funds, so long as you can meet the minimum investment criteria (while there are some no-minimum funds, others can have minimums ranging from $500 to $3,000 or more). Since many mutual funds have a low-risk holding, they may appeal to risk-averse investors and retirees.
Bottom line
Mutual funds allow individual investors to pool their money and take advantage of professional management while diversifying their portfolios across various asset classes. Taking time to review mutual fund companies can help you discover which company has the right costs and opportunities to fit your investment goals.
- Guide sources
- ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- U.S. Securities and Exchange Commission, “Mutual Funds.” Accessed July 7, 2023.
- Investment Company Institute, “Trends in the Expenses and Fees of Funds, 2022.” Accessed July 6, 2023.
- Fidelity, “Understanding Fidelity's FundsNetwork Fees.” Accessed July 6, 2023.
- Nasdaq, “5 Mutual Funds With Huge Minimum Investments.” Accessed July 7, 2023.
- U.S. Securities and Exchange Commission, “No-load Fund.” Accessed July 10, 2023.
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Compare Reviews for Top Mutual Fund Companies | ||||||
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Read Author Review | J.P. Morgan offers many financial services and products including brokerage accounts, asset management, wealth management and more. It sells and manages mutual funds for J.P. Morgan account holders and outside investors. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | |||
Read Author Review | Fisher Investments is a fee-based financial advising firm with fiduciary advisors who help investors buy mutual fund shares. It was founded in 1979 and is headquartered in Camas, Washington. It serves over 35,000 clients. | ![]() | Chat with a ConsumerAffairs decision guide Live agent |
Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.
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