| Almost everybody has the ambition to get rich | | | | ensure that you make money. It's like having a |
| without lifting a finger - that's because there's | | | | symbiotic relationship with them: if they do good, |
| plenty of us out there that are driven by laziness | | | | you do good, heck all of you do good. Usually an |
| and greed. We like to find ways for having our | | | | investment manager does the buying and selling |
| cash work for us, or apply the Law of Leverage, | | | | on your behalf, making sure all goes in your favor. |
| which is to multiply our efforts through others. A | | | | As the investments diversify, the risk of loss gets |
| classic example of that would be an Egyptian | | | | lower and lower, which is clearly what everybody |
| Pharaoh having his slaves build infrastructure or | | | | wants. There are three types of mutual funds, |
| gather the rice grains which he uses for sale | | | | the first being: equity funds - which is basically |
| trade - he doesn't do anything, but gets all the | | | | investing in common stocks. |
| work done and gets richer and richer. You're not | | | | This is considered to be very risky, but it can also |
| a Pharaoh, so how do you get rich? Well one way | | | | mean lots of money for you. The second type |
| would be putting your money in a median that | | | | are the fixed income funds, which is a lot safer |
| can help you reach that particular financial goal. | | | | due to the fact that they're basically government |
| One "vehicle" that can get you there are mutual | | | | and corporate securities. Here you don't take that |
| funds, how does this work? Simple: what you do | | | | much risk, which in some cases could mean that |
| is buy mutual funds from a mutual fund company | | | | you don't earn that much (as compared to |
| or broker. From there, the company that you've | | | | investing in equity funds). Lastly, we have |
| entrusted your cash with invests it into a variety | | | | balanced mutual funds, which consists of stocks |
| of short term investments, like the following: | | | | and bonds. This type of investment is the safest |
| assets, bonds, stocks and securities. What | | | | amongst the three stated here, but it also is the |
| happens next, if all does go well, is you receive | | | | "slowest earner" of all. |
| dividends for each of the mutual funds you've | | | | The discussion of the three kinds of mutual funds |
| purchased, which is your share of the profit made | | | | brings up an old saying: "no risk, no reward" - I |
| off it. Some people (many perhaps) find the | | | | forgot who said it, but I do know that it does |
| whole process scary because they have no idea | | | | apply to the basic "operating principle" of mutual |
| what to do first or feel that it's too much risk to | | | | funds. Important reminder: your shares can be |
| take. | | | | sold back to the broker or to another customer |
| Fear not old friend, your investment is being | | | | at your will. If your interested in getting into this |
| managed by the company's team of investment | | | | game, then I suggest you do more research |
| professionals - these guys know exactly what | | | | about the different companies you could invest in. |
| they're doing and find the best ways possible to | | | | |