Mutual Funds

Our topic is a popular investment choice: Mutual funds. Simply put, a mutual fund buys and sells stocks, bonds, other securities... But how does it raise the money for all this buying? By selling shares in the fund to people like you. The mutual fund hopefully goes on to make money, keeps a chunk to cover costs, pays the managers...THEN whatever profit is left, is paid out to you -- the shareholder.

There are gazillion types of Mutual funds, but they ALL have the same 3 features:
1 -- They all state an "investment objective" for what the fund wants to achieve
2 -- Every mutual fund has a manager -- or managerS -- who run it
3 -- All of them offer a "reinvestment plan", so you can plow your profits right back into buying more shares

Now all this is just an appetizer of information... for the 8-course meal on mutual funds, you need a professional. Of the investment kind. From Wall Street E, of course ...

Category:

Howto & Style

Tags:

• mutual
• funds
• online
• brokers
• investing