Mutual Funds and Self-Directed Investing: A Symbiotic Relationship
TL;DR
Axos Invest offers a self-directed account with commission-free mutual fund investments, giving you greater control over your financial future.
Axos Invest allows you to make your own investment decisions and access over 10,000 mutual funds through a straightforward platform.
Investing in mutual funds through Axos Invest's self-directed account can help individuals achieve their financial goals and gain greater financial independence.
Mutual fund investing through a self-directed account at Axos Invest provides a unique opportunity to take control of your investment portfolio and grow your wealth efficiently.
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The investment landscape has evolved significantly over the past two decades, with technology making it easier for individual investors to trade from their homes using computers and mobile devices. The pandemic further spurred this trend, increasing the number of stock market traders from 15% in 2019 to 25% in 2021 and boosting retail investor sentiment to an all-time high in early 2023, driven by opportunities presented by AI.
Despite the accessibility of day trading, selecting winning stocks and timing the markets can be daunting. Mutual funds present an alternative, providing a diversified basket of securities and reducing the need for individuals to pick stocks or bonds. According to the Investment Company Institute, over 52.3% of American households owned mutual funds in 2023, primarily for retirement savings.
Mutual funds serve multiple purposes, including wealth building, financial security, and diversification. They grant exposure to various securities across different sectors and regions, from technology stocks to emerging markets.
Mutual funds are categorized into open-ended and closed-ended funds. Open-ended funds continually issue new shares and are priced based on their net asset value (NAV), ensuring price stability. Closed-ended funds, on the other hand, have a fixed number of shares and can exhibit price volatility, trading at a premium or discount to their NAV.
Axos Invest, the investment division of Axos Bank, offers a self-directed account that provides investors with control over their portfolios. This platform enables commission-free investments, including mutual funds, and features low minimum balance requirements, often around $100. Axos Invest also allows one-share purchases and offers tools like the Axos Scheduler for automatic contributions, facilitating the compounding effect similar to dividend investing.
With over 10,000 mutual funds available on an intuitive trading platform, Axos Invest aims to simplify self-directed mutual fund investing. Their platform consolidates accounts and provides market data and research, ensuring investors can perform due diligence without leaving the site. By maintaining low fees and providing comprehensive services, Axos Invest helps investors reclaim their financial independence.
As self-directed investing and mutual funds become increasingly intertwined, they offer a balanced approach to financial planning, combining individual control with diversified investment strategies. This development is particularly relevant in today's volatile market, providing a pathway for both novice and seasoned investors to achieve their financial goals.
Curated from News Direct
