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Mutual Fund Question
I want to invest in Vanguard Mutual Mid-Cap Fund (VMVAX). If I buy $10,000 of this fund, will I'll be just buying $10K from another investor that hold this fund, or do Vanguard use that $10K to buy more shares of the stocks in the index? I'm just curious. Thanks.
No one can answer this? LOL
To assume that because no one did answer it means that no one can answer it would shortsighted.
I looked at the ticker when you posted and there was no bid/ask....no volume. Just daily ticks on a single price. So I'm wondering..."Does this guy even trade...I mean he's posting this question on a Traders Forum? Maybe this question would be better suited for a mutual fund forum, or money manager forum or some other asset gatherer forum where they deal with this kind of thing"
So my question then is...do you have a Vanguard account, or are you using a financial adviser or what....how do you plan to put the order through?
But really it doesn't matter who your counterparty is. There is no float that I can find just a $3k minimum and a couple billion under management. So I'm guessing that you just give your money to whomever it is your dealing with...they charge you a fee, the funds go where there supposed to go and you close your eyes and get whatever it returns after the drag and other fees they will be charging you along the way.
There is no secondary market for mutual funds so you would not be buying from another investor. Unlike stocks, mutual funds do not have a market cap and shares are continuously being sold and redeemed.
