All About the Mutual Funds

Let's suppose you're just getting started as anvarious other investments.
investor and have $10,000 to invest and youThey are professionally managed on behalf of the
have three important objects you want toshareholders, and each investor holds a pro rate
achieve.share of the portfolio -- entitled to any profits
1st, Want security, don't lose money in a riskywhen the securities are sold, but subject to any
venture, like that found in a certificate of depositlosses in value as well.
or other fixed income investment.Types of Mutual Funds?
2nd, Want to make the most money you can, soMost funds can fall into three major types -
you want the prospect for growth potential, too.growth funds,income funds and balanced funds,
3th, Want professional money management --by how aggressive or conservative they are and
occasionally diversifying your investments intoby investment objective. A mutual fund can also
promising new opportunities, since you don't havebe a loaded fund or no-load fund, and so on.
the time or knowledge to actively manage yourGrowth funds are more likely to invest in
money.well-established companies stocks where the
It sounds like to be a very good plan, but wherecompany itself and the industry in which it
can you invest your money and have a chance tooperates are thought to have good long-term
meet all three criteria? The answer for more andgrowth potential.
more Americans is to invest in funds.Income funds are tend to invest in government
What Is Mutual Funds?or corporate securities, it offer its investors a
As an investment tool, mutual funds pool togetherregular income usually paid out in the form of
money from numerous investors and invest thismonthly dividends. This is why this type of
collective sum into a variety of stock, bonds andinvestment is called a fixed income fund.