| If you feel clueless this mutual fund investment | | | | 401k. |
| guide is written for you. It may not be the best | | | | Very simply, you just pick the funds to invest in |
| mutual fund investment guide ever written, but it | | | | and send in money. Whether in your 401k, IRA, |
| could be the simplest. Where's your money? | | | | or an account you open with a financial planner or |
| Chances are you already have an investment in | | | | on your own with a no-load fund company... you |
| funds, or will some time in the future. | | | | invest your money with them and they do the |
| Mutual funds are the easiest way in the world to | | | | rest. You will also receive periodic statements that |
| invest in stocks and bonds. And stocks and bonds | | | | show you what you own and the value of any |
| are the building blocks of any investment portfolio, | | | | mutual funds you have with them. |
| whether large or small. The giant insurance | | | | Don't avoid mutual funds. They are the best |
| companies and pension funds manage their own | | | | investment for most people most of the time. |
| stocks and bonds. Most individual investors rely on | | | | These funds are also the investment options |
| fund companies to do the management for them. | | | | available in most 401k plans. You need to invest in |
| If you invest with the best mutual fund | | | | stocks and bonds to put your money to work. |
| investment companies, you get good service and | | | | Otherwise, you're stuck with money safely |
| the cost of investing is minimal. | | | | tucked away someplace making peanuts in the |
| When you make an investment in mutual funds | | | | form of interest. When you think of stocks and |
| you simply invest a dollar amount. The fund | | | | bonds, think stock funds and bond funds. |
| company then issues you shares based on the | | | | We wrap up our fund investment guide with one |
| price of the fund's shares upon receipt of your | | | | of life's realities. Investment companies (mutual |
| money. Then they invest your money along with | | | | funds) do not work for free. The best mutual |
| that of their other investors. Equity funds (stock | | | | fund investment companies keep the cost of |
| funds) invest your money in stocks. Bond funds | | | | investing low, and most funds are reasonable in |
| invest in bonds; and balanced funds invest in both | | | | the cost department. If you want to invest on |
| stocks and bonds. The value of these shares will | | | | your own and keep the costs low, open an |
| fluctuate. Hence the value of your investment will | | | | account with a no-load fund company. Your best |
| go up and down as you hold it. | | | | mutual fund investment is often a low-cost fund |
| There is one exception to the above statement. | | | | with either of the following reputable fund |
| The fourth major category of mutual funds is | | | | companies: Vanguard or Fidelity. These two also |
| money market funds. The value of their shares is | | | | happen to be the two largest investment |
| stable, at $1 a share. These are the safest funds, | | | | companies in the fund business. Check them out |
| and they simply pay interest in the form of | | | | on the internet, and call for free information. |
| dividends. Funds that invest in stocks and/or | | | | If you explain that you have money to invest and |
| bonds usually pay dividends as well. You can | | | | want to learn more about their mutual funds, you'll |
| receive these dividends, or simply tell the fund | | | | get a nice package in the mail a few days later. |
| company to reinvest your dividends to purchase | | | | Study the material, and you won't feel so clueless |
| more fund shares. The latter is automatically | | | | anymore. Good luck and I hope this basic |
| assumed if you hold mutual funds in an IRA or | | | | investment guide has been helpful. |