Originally my plan was to use non transaction mutual funds (NTF) as a savings vehicle. You can save a small amount of money without paying any commission or fees and as long as you save enough to buy the stock, sell the fund and buy the stock. I was looking for the fund which can provide some growth, is relatively cheap (low expense ratio), has nice yield and is free to buy. PIMCO All Asset All Authority Fund Class D (PAUDX) was a good choice.
But not anymore. I no longer like this approach – saving cash in a fund, then sell and buy a stock. The reasons for that are that you had to hold the NTFs for at least 180 days or you would be charged a redemption fee $49. The growth of the fund is questionable and the expense ration is now 2%. I think I can keep ETFs doing the same job for cheaper, or wait a bit with cash and then buy dividend stocks outright.
So I decided to close this position and use the money later buying a dividend paying stock – either adding a new position or adding to any of my existing positions.
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