| If you have considered investing with a mutual | | | | any way indicate future results. Past performance |
| fund, you are not alone, millions of Americans are | | | | can however indicate if the fund is consistent or |
| flocking to these open end mutual funds because | | | | not. It is wiser to avoid volatile funds that make |
| they are recognizing the common sense of such | | | | large gains one year, then losses the next |
| a proposal. | | | | because this can indicate a measure of instability |
| Unlike hedge funds, Mutual Funds are very heavily | | | | and risk taking. However, this must be a personal |
| regulated by the FTC making them a safe option | | | | choice you make. |
| for small investors. These work by pooling | | | | Also mutual funds are not guaranteed or insured |
| together many investors funds and controlling | | | | by the FDIC or the government. Even if you |
| those funds to take advantage of opportunities | | | | bought the shares of your chosen fund from a |
| that come about. Typically they will invest in | | | | bank, (which is insured by the government) they |
| stocks, bonds, and various security instruments, | | | | will typically be acting as brokers for the product |
| including even real estates and property like | | | | and there banking status is not transfered to the |
| shopping centers or buildings. They tend to be | | | | product you purchase. |
| very conservative with their choices however | | | | Another thing to remember is that fees and |
| they are typically aggressive about getting in and | | | | charges can erode the annual gains you make so |
| out of investments. This means the return is | | | | it is good to make sure you compare on a fees |
| usually quite good, depending on the fund. | | | | and charges basis too. You can use the following |
| The key point to remember when choosing a | | | | calculator to better understand Mutual funds fees |
| mutual fund is that past performance does not in | | | | and charges calculator. |