| You want your money to grow and work for | | | | many ways. Once again, the drawback is a lower |
| you, but risk makes you uncomfortable. Is there | | | | rate of return on your investment. |
| a way to do it safely? You bet there is. | | | | Mutual Funds are one of the safer ways to seek |
| There is a rule of investing that is ancient and | | | | a little more return with a minimum of risk. A |
| unchanging. It has guided the investment | | | | mutual fund basically gathers investments from a |
| strategies of people since the very beginning of | | | | large number of individual investors and puts the |
| commerce and the advent of money. This rule | | | | total amount under the control of a fund |
| states that the bigger the risk, the more the | | | | manager. The fund manager invests in various |
| return. You can invest in safe and secure | | | | stocks and other investments to try to make a |
| investments, but you will not make big profits or | | | | profit. The profit is then split among all the |
| grow rich. You also will not be likely to lose your | | | | investors. The fund manager is guided by certain |
| investment and go broke either. When you | | | | restrictions in his investment options depending on |
| understand this principle, the answer to the | | | | the type of fund, but by spreading the |
| question becomes dependent on the rate of | | | | investment out over a large number of various |
| return you are expecting. It would be better to | | | | stocks, he reduces the chances of taking a major |
| go ahead and phrase it this way: What is the | | | | loss. One disadvantage is that a certain amount of |
| safest way to invest money to realize the return | | | | the profit must go to pay the administrative |
| on my investment that I desire? | | | | costs of running the fund. This reduces the profit, |
| A regular passbook savings account at your local | | | | but still, overall, the mutual fund represents a safe |
| bank could be considered a form of investment. | | | | investment that can give a higher return than |
| Many people see saving and investing as two | | | | simple savings. |
| totally different things, but when you understand | | | | It does not really matter what type of |
| the risk versus return principle; you can view | | | | investment you chose. There are still some ways |
| savings as a very low risk investment. There are | | | | to make the investment safer. The most |
| ways to increase your return even when | | | | important is to study the investment carefully. |
| investing in savings at the bank. Certificates of | | | | When you are armed with knowledge, you have |
| Deposit and Money Market accounts pay a higher | | | | a much better chance of negotiating the rocky |
| rate of return than passbook accounts. | | | | waters of investment. You can develop an |
| Bonds such as United States Saving Bonds are | | | | investment strategy that further reduces risks. |
| another low risk, low return investment. There | | | | What you can not do is find a sure thing in |
| are many types of bonds issued by local | | | | investing. Certainly not in an investment that |
| governments and corporate entities. The bond is | | | | offers the chance of a large return. If you are |
| basically a promise to repay at certain amount of | | | | not willing to take some risks, the savings account |
| money and interest over a certain time span. | | | | at your bank might be the best course for you. |
| They are similar to Certificates of Deposit in | | | | |