Avoiding Fidelity's transaction fee on TICRX

[Boho]

I'm likely buying TICRX, fee or not, but Fidelity says:

Quote:

...The FundsNetwork(R) mutual fund you selected to trade does not participate in the No Transaction Fee program. Fidelity will charge a transaction fee each time you buy or exchange shares of FundsNetwork(R) transaction fee funds. For additional information, see the commission schedule on Fidelity's web site.

The estimated transaction fee is $49.95. I currently only have an account with Fidelity. Should I buy this particular mutual fund elsewhere? Where?

[COcheesehead]

It looks like a proprietary fund for TIAA CREF. That's probably why. You can check similar funds that are no fee. It looks like it tracks the Russell 3000. You can even just buy a low cost ETF.

[Boho]

I actually worked for them part time a long time ago. I don't suppose that would help me.

[braumeister]

When you research funds at Fidelity, you can select just those with no transaction fee if you want. Just be aware that out of over 10,000 funds offered, only about 3,500 have no transaction fee. That's still a lot.

[COcheesehead]

Quote:

Originally Posted by Boho I actually worked for them part time a long time ago. I don't suppose that would help me.

It might hurt you. LOL.

[COcheesehead]

Quote:

Originally Posted by braumeister When you research funds at Fidelity, you can select just those with no transaction fee if you want. Just be aware that out of over 10,000 funds offered, only about 3,500 have no transaction fee. That's still a lot.

ITOT is no commission, no fee and is similar.

[Boho]

Quote:

Originally Posted by COcheesehead ITOT is no commission, no fee and is similar.

On December 1 TICRX nosedived relative to the S&P and hasn't recovered. Even without knowing the details I'm taking that as a bit of an indication that the price is low. Plus it's a socially responsible fund and it's rated a "buy" by a couple of websites that I pay attention to, which doesn't happen so often, and has generally good reviews.

[MRG]

Quote:

Originally Posted by Boho I actually worked for them part time a long time ago. I don't suppose that would help me.

Sure ask for the former employee discount.

[braumeister]

Quote:

Originally Posted by Boho On December 1 TICRX nosedived relative to the S&P and hasn't recovered. Even without knowing the details I'm taking that as a bit of an indication that the price is low.

No, it's completely irrelevant. When a fund makes a distribution (dividends, cap gains) it's per-share price drops an equivalent amount.

Boho, you really, seriously, need to do some reading on investing. Go to the Bogleheads site and just start reading from their great resources.

[Boho]

Quote:

Originally Posted by braumeister No, it's completely irrelevant. When a fund makes a distribution (dividends, cap gains) it's per-share price drops an equivalent amount.

Without recovering over time? It hasn't recovered. It dropped about 7% and I read that distrubutions are made once or twice per year. It doesn't lose 7+% per year without recovering. I'm not saying I know how it works exactly but my interpretation of what you're saying doesn't sound right.

[COcheesehead]

Quote:

Originally Posted by Boho Without recovering over time? It hasn't recovered. It dropped about 7% and I read that distrubutions are made once or twice per year. It doesn't lose 7+% per year without recovering. I'm not saying I know how it works exactly but my interpretation of what you're saying doesn't sound right.

The NAV is somewhat meaningless. The fund is just about at its high for the year and had a 22% 1 year return. It is not low.

[haha]

Quote:

Originally Posted by Boho Without recovering over time? It hasn't recovered. It dropped about 7% and I read that distrubutions are made once or twice per year. It doesn't lose 7+% per year without recovering. I'm not saying I know how it works exactly but my interpretation of what you're saying doesn't sound right.

Cool. Just go with your interpretation. Couldn't be wrong, could it?

Ha

[Boho]

Quote:

Originally Posted by haha Cool. Just go with your interpretation. Couldn't be wrong, could it? Ha

The solution to being unable to break things down so a novice could understand is to either learn to do so or avoid dealing with novices, not being an ass.

[braumeister]

And another "Thank You" to the forum owners for incorporating the handy "Add ____ to Your Ignore List" feature.

[LOL!]

Quote:

Originally Posted by Boho The solution to being unable to break things down so a novice could understand is to either learn to do so or avoid dealing with novices, not being an ass.

Yep, works both ways.

[Animorph]

The Fidelity fee only applies to purchases. Sales (and auto-reinvested distribution buys) are free. So if you are planning to buy a large block of shares now and hold them that should work out fine for you. If your plan is to buy several times a year to build up to your desired level then I'd select a different fund or find a brokerage that carries it without a fee.

As to the fund itself, a decline in December without a recovery is very likely to be a dividend/capital gains distribution. It is actually hard to find performance charts that adjust for distributions (as if you reinvested the distributions instead of just threw them away). Compare funds in the Fidelity mutual fund compare tool to see the adjusted gains over various periods. Morningstar.com is another site that will have that info. Without those adjustments, price charts are almost useless.

[Ian S]

Quote:

Originally Posted by Boho On December 1 TICRX nosedived relative to the S&P and hasn't recovered. Even without knowing the details I'm taking that as a bit of an indication that the price is low. Plus it's a socially responsible fund and it's rated a "buy" by a couple of websites that I pay attention to, which doesn't happen so often, and has generally good reviews.

As others have commented, there was a distribution of over $1 a share in December which accounts for the drop at that time. You'd have to add the amount of that distribution (1.059) back to the current per share price to get some idea of its actual performance over the past year. Morningstar rates it average. Better choices might be PRBLX or VSLPX. If you still want it, TDAmeritrade has it for no transaction fee.

[MRG]

Quote:

Originally Posted by braumeister No, it's completely irrelevant. When a fund makes a distribution (dividends, cap gains) it's per-share price drops an equivalent amount. Boho, you really, seriously, need to do some reading on investing. Go to the Bogleheads site and just start reading from their great resources.

+1
For your own benefit please read. You are where all of us were sometime, save yourself the learning with my own money education many of us endured.

Look at a simple portfolio of low cost index funds, Google "couch potato portfolio" and read. In the intro section there's a suggested reading list, pick up one or two books.

You're trying to time the market, that generally ends poorly. Go read how to invest! That's how to retire.

[Boho]

Quote:

Originally Posted by Ian S PRBLX

That's actually a socially responsible fund too. I think that's my new choice. I wasn't looking for any particular kind of fund, just socially responsible and good performance, and I'd adjust how much I buy based on other details.

[Boho]

Quote:

Originally Posted by MRG +1 For your own benefit please read.

I searched pretty hard for a good, basic book on investing but just like with the better internet forums, they tend to be special interest books. I bought one though. A Random Walk Down Wall Street. But I feel like I get the point without even opening it. I wonder if it even mentions this issue with the distributions and the problems with the charts.

Instead of those worthless disclaimers in prospectus' about the fact that you may lose money, there should be a disclaimer under these charts I've been reading that don't account for distributions.