mutual funds

I love mutual funds. My wife says I sound like a total investment nerd when I talk this way, but I say it without shame or embarrassment. Mutual funds are beautiful and elegant and powerful. From the moment the first mutual fund was launched in 1924, they have allowed millions of people to participate in the capital markets who would never have had the opportunity otherwise.

Q: I am mostly invested in mutual funds, but my friend says I should use exchange-traded funds instead because they have lower taxes. When I ask my financial advisor he says mutual funds work just as well. Who is right and should I be using ETFs instead of mutual funds?

Q: I’ve noticed that several of my mutual funds have different share classes. I own A shares, but I see that my funds also come in B and C shares. What’s the difference and is one share class better than the others?