I know margin has more risks, but I already have equal amount of funds in a CD which matures in 2 years. Until then I wanted to find out if I can buy a few using margin in my account.

Thanks in advance

 

  • A nobody 3:49 am on October 4, 2010

    Yes you can buy mutual funds in your margin account.

    Without knowing more of your personal information, and current financial status and other data such as risk tolerance, martial status, and demographics it would be very inappropriate for me or any other responsible person, especially a professional from the investment industry, to provide specific investment information in this type of media.
    At the same time it would not be prudent of you to accept any specific investment advice from those you personally know nothing about other than a responder here YA.

    Therefore I do not give specific investment advice

  • Spock (rhp) 3:49 am on October 4, 2010

    seems ok to me and ask your broker. but why aren’t you suing ETFs to avoid the mutual funds’ fees?

  • Rozina Akter 3:49 am on October 4, 2010

  • yoitsmejared 3:49 am on October 4, 2010

    I’m just going to suggest that you avoid mutual funds and ETFs all together… buying individual stocks is the best way to go because you get to pick only the best of the best… ETFs take all/most of the stocks in a group or sector, so you get a lot of losers. Mutual funds are the same to a certain extent. Plus both mutual funds and ETFs have fees that can sometimes be 3% or more, where as individual stocks do not.

    BTW buying mutual funds with margin would be really risky even if it is possible, think what would happen if one of those stocks goes the way of BP and pulls down your whole fund value… you could loose more than you started with.

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