| What are Mutual Funds? | | | | or owned jointly with your spouse. |
| Mutual funds are professionally managed baskets | | | | Why Mutual Funds? |
| of securities primarily consisting of stocks, bonds, | | | | Every investor needs an investment portfolio (list |
| and money market securities. | | | | of investments) that is balanced to fit the |
| What is the Cost of Investing in Mutual Funds? | | | | investor's risk tolerance. At the same time, your |
| With the right no-load mutual funds sales charges | | | | investment portfolio should be tailored to fit your |
| can be zero, with less than 1% a year deducted | | | | needs in regard to various factors. No single |
| from your account for expenses. With the wrong | | | | investment will accomplish it all for you. In varying |
| load funds, you might pay 5% or so in sales | | | | degrees, we all need an investment package that |
| charges up front, and/or more than 2% a year in | | | | addresses: growth (higher returns), safety, |
| expenses. | | | | income, tax advantages, and so on. |
| Who Should Invest in Mutual Funds? | | | | If you want to, you can juggle an armload of |
| Virtually everyone interested in having a secure, | | | | various stocks, bonds, money market securities, |
| comfortable retirement should give mutual funds | | | | and alternative investments. This will require more |
| serious consideration. These investment packages | | | | than just a little time, effort, commitment, and |
| were designed for the average investor. You fit | | | | expertise on your part if you are to be |
| into this category unless you are extremely rich | | | | successful. Or, you can simplify matters and |
| and financially sophisticated. | | | | concentrate your efforts on holding just a few |
| When Should I Invest in Mutual Funds? | | | | well-selected mutual funds. |
| You should start as soon as you feel you can | | | | How Do I Get Started? |
| afford to set money aside for longer-term goals | | | | Starting out you need to get up to speed on the |
| (like retirement). Establish an income and get | | | | basics. To get a handle on mutual funds, you'll |
| everyday expenses under control first. Once you | | | | need to know stocks, bonds, and money markets |
| have a cash reserve and have taken care of | | | | first. Then you need to get the big picture; and |
| your insurance needs (auto, home, life, disability) | | | | put all of the investments in the world into |
| you are ready to invest. Investing in mutual funds | | | | perspective. |
| offer investors of all ages the prospect for higher | | | | Once you have a handle on the investments |
| returns (growth), and/or higher income, and/or | | | | available to you, you're ready to learn the art of |
| competitive interest income with safety. | | | | investing. By maintaining a balanced portfolio, |
| Where Can I Invest? | | | | financial success is within your reach. |
| Virtually every 401(k) or similar retirement plan | | | | Asset allocation within your balanced portfolio is |
| offers mutual funds as investment options. You | | | | the real key to achieving you financial goals. Asset |
| can invest in mutual funds through an investment | | | | allocation means simply where you have your |
| professional, or you can buy and sell them on | | | | money invested, and in what proportion. |
| your computer through a discount broker. Once | | | | Which funds should I hold in what proportion? |
| you are informed, I suggest you invest directly | | | | Keep it simple. Start by concentrating on learning |
| with a major no-load fund family to avoid sales | | | | all you can about mutual funds. There is a fund to |
| charges and to keep your yearly expenses low. | | | | fit virtually every investor need. Once you know |
| You can invest in mutual funds in a regular IRA or | | | | funds, you can build your own portfolio of mutual |
| Roth IRA, and in a taxable account in your name | | | | funds. |