Select “Add or Explore” under Investments, search for “Charles Schwab U.S.,” then follow the instructions to connect accounts.
What are mutual funds?
Think of mutual funds as a collection of investments. They can include stocks, bonds, and other types of investments. Mutual funds can help you by spreading investments across multiple asset classes. This is also known as diversification.
Mutual funds are managed by professionals. They can be an easier way to hold a diversified collection of investments without needing to monitor the performance of many individual securities.
How do mutual funds work?
Mutual funds are purchased through a brokerage account. You could also buy them in an IRA.
When you're buying into a fund, you're pooling your money with other investors. You can invest a lump sum or a monthly amount.
Funds vary in their approach to risk. They're run by professional money managers who decide which securities to buy and when to sell them.
This means you can invest without having to learn the inner workings of the stock market.
Individual stocks versus mutual funds
Understanding the differences between investing in individual stocks and mutual funds can help you decide what works best for you.
Simplify your mutual fund search.
Schwab has tools designed to help you find and compare mutual funds to meet your needs and complement your portfolio.
- Narrow down thousands of funds to a few.
- Compare the funds you think may be right for you.
- Select your fund with more confidence.
See all your investment accounts in one place.
View your Schwab investments alongside your USAA accounts without leaving usaa.com or our mobile app. Here's how.
Steps to complete See all your investment accounts in one place.
Mutual funds FAQ
Mutual funds and ETFs differ by how they're bought and sold. Mutual funds trade once a day, and all investors pay the same price.
ETFs trade like stocks, so investors pay different prices depending on the price of the ETF share at the time of trade.
Another key difference is in management. Both may be actively or passively managed, but mutual funds are usually actively managed while ETFs are usually passively managed.
There are three kinds of costs.
- The transaction fee is charged by some brokerages whenever you make a trade. A trade happens when you buy or sell shares.
- A load is a one-time commission some fund companies charge whenever you buy or sell shares in certain load-based mutual funds.
- The operating expense ratio, or OER, is a percentage-based fee charged every year to cover expenses. A $10,000 investment with an OER of 0.5% costs about $50 per year. Learn more
Your financial goals and risk tolerance can help to narrow your choices. You'll also want to align your financial goals, such as growth or income, with the stated objective of the fund. Some funds, like target date funds, are designed for specific goals like retirement.
Fund fees may play a factor as well depending on your situation. These costs may have a significant impact on long-term growth or your tax obligations.
Discover more investing resources.
You can invest with more confidence when you brush up on investing basics and get familiar with your options.
Find mutual funds that fit your needs.
Let a trusted provider help you invest for the future.
Important information from USAA Investment Services Company (ISCO):
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