| When you start investing in mutual funds, you will | | | | to one of these agencies. As the loan is slowly |
| need to choose from a large selection. Mutual | | | | repaid, you gain interest. This will generally provide |
| funds are available in many different kinds and in | | | | you with a stable but lower rate of interest.o |
| different levels of risk. Since they are based on | | | | Money Market Funds |
| stocks, among other things, there will also be a | | | | These are low interest loans that are made either |
| reflection on the market of how well certain | | | | to state or local governments. They are very |
| stocks are performing. Here are some types of | | | | stable but on the low end in interest when it |
| mutual funds that are available for you to buy. | | | | comes to mutual funds. They are generally |
| Mutual Funds Reflect the Market | | | | short-term and can last anywhere from one day |
| If you are aware that certain types of stock are | | | | up to about a year. An advantage is that they |
| not performing well at the time you are looking to | | | | are generally tax-free if it is for the state you live |
| buy, then you can skip over those mutual funds | | | | in, and free from Federal tax.o Stock Funds |
| that deal with low performing stock. Remember | | | | This type of fund will potentially give you the |
| that a mutual fund is composed of various | | | | highest interest rate. They are the most |
| stocks, bonds, and other things, and will reflect | | | | commonly sold funds, and can bring a lot of |
| that market. | | | | growth to your portfolio. Be careful of investing in |
| Different mutual funds, however, cover the | | | | one sector only, as this can lead to costly losses |
| markets differently, giving you either a broader | | | | if that sector fails.o Mixed Assets |
| base of protection or a narrow one if it | | | | As its name implies, it is a mixed bag of stocks |
| concentrates on a specific market sector. You | | | | and bonds to provide you with a more stable |
| can buy mutual funds by market sector, and in | | | | portfolio through wider diversification. The bonds |
| some cases, by geographic location - such as a | | | | offset the rising and losses of the stocks and |
| particular country. | | | | should provide you with a mix that is good for |
| Load and No-Load Funds | | | | the long haul. |
| Mutual funds are generally available as either a | | | | You can choose from a variety of types of funds |
| load fund or a no-load fund. All that means is that | | | | to make up your perfect mix. Some of these can |
| either there is a sales fee associated with it or | | | | also match your risk level by giving you a |
| there is not one with it. The value of the mutual | | | | conservative, moderate or a high level of risk. |
| fund is not necessarily determined by these | | | | When you look to purchase mutual funds, be sure |
| criteria, however, so you can find good funds | | | | to compare companies, costs, and all other |
| under either term. | | | | features before you buy. Look at the age of the |
| Types of Funds | | | | company your fund is from, the type of stock, |
| Several different types of mutual funds are | | | | your level of participation, and how much |
| available for you to focus your investments. | | | | assistance the fund provides. Companies vary, |
| These include four kinds:o Bond Funds | | | | and the degree of protection you have may |
| Bond funds are made up of government, | | | | vary, too. |
| municipal or corporate bonds and serve as a loan | | | | |