Banks offering easy investing in mutual funds

April 18, 1993|By Knight-Ridder News Service

Looking for an easy way to invest in mutual funds? Drop b your local bank.

That's right. Banks are quickly becoming a popular outlet for mutual-fund sales, says the Investment Company Institute, a Washington trade group.

The institute says banks now account for about 14 percent of all sales involving stock funds and bond funds, up from a negligible number two years ago.

"This points up once again that many people who invest in mutual funds want to do so where they are working with a personal representative," said Betty Hart, an institute spokeswoman.

Before rushing to your bank to invest, consider these factors:

* Generally, the funds sold by banks charge a sales commission. You can avoid those fees by buying shares in "no-load" funds, which are sold directly to the public by some mutual-fund companies.

* The Federal Deposit Insurance Corp. insures only deposits at banks, so your mutual fund investment would not be insured.

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