![]() |
History of Money |
Savings Options |
Financial Institutions |
Investing | Useful Links |
Glossary | |||||||||||||||||||
| Investing | ||
| What is Investing? Why Invest? Time Value of Money Rule of 72 Stock Market Bonds Mutual Funds Quiz |
||
Mutual FundsWhen investors decide to invest in a mutual fund, then money is put in a pool of money from other investors to create a large portfolio so everyone benefits from bigger profits. Most funds buy a variety of investments like stocks, bonds, or other securities. Because there is such a variety of different investments in one mutual fund, there is not as much of a risk. Usually if one investment has a bad return, another will make up for that loss.To invest in a mutual fund, an investor buys shares of the fund and becomes a shareholder. That fund makes money two ways: by earning dividends or interest on its investments and by selling investments that have grown in price. The fund then pays out its profits to the shareholders. Note: This is better if you are investing for long term profits.
|
||