How do I invest in a mutual fund?
Once you know which mutual fund(s) you want, you’ll need to open a brokerage account. Anyone can do this with online investment platforms like Fidelity, Charles Schwab, TD Ameritrade, or E*Trade. Just keep an eye out for fees.
Once you open your account, you’ll be able to make elections decisions, meaning which mutual fund(s), stock(s), etc. to invest in. You can link your regular bank account (checking or savings), transfer money into your Scottrade account, and then choose which mutual fund(s) or individual stock(s) to buy.
The screenshot below shows how you would purchase $500 worth of AMAGX on Scottrade (which unfortunately no longer exists since it was acquired by TD Ameritrade).
In the budget you designed (see Lesson 1), you should have determined how much you will put in investments each month. So be consistent every month and don’t take it out until you need the money for a larger financial goal, like buying a house.