Mutual Fund
Mutual funds are among the most versatile financial planning vehicles in the United States.They can be useful in achieving the long and short -term goal you've established for your family by completing your Financial Lifestyle Strategy (FLS).
A Mutual Fund is an investment company that combines money from individual and invest in a diversified portfolio of securities.Each investor is a shareholder who buy shares of the fund. Each share represents a proportion of ownership in the funds' assets.
There are different kind of mutual funds,and each kind is designed to benefit from either short term or long-term investment strategy.
Basic Types of Mutual Funds:
Long-term Funds
Short Term Funds
The stock market is probably one of the best option s for people who wants to be involve in high -yielding investments. Studies show that the stock market has consistently outperformed all other types of investment over the long-term.However,in a rapidly changing economic and political environment,owning and monitoring a portfolio of stocks require more analysis and effort than the average person can handle.
The conviction to buy security,the patience to hold on to it as long as necessary, and the wisdom to sell at the right time are qualities that lead to success in the stock market.These qualities,however,are develop through years of experience and require abundant information and capital resources.For the ordinary investor,these qualities can only be obtained through the services of professional fund managers,or through investment in actively managed equity funds.
Mutual funds are among the most versatile financial planning vehicles in the United States.They can be useful in achieving the long and short -term goal you've established for your family by completing your Financial Lifestyle Strategy (FLS).
- A Typical shareholder invest through employer-sponsored retirement plans and has long term financial goals such as retirement.
- There are more than 7,300 mutual funds representing a wide variety of of investment objectives.
A Mutual Fund is an investment company that combines money from individual and invest in a diversified portfolio of securities.Each investor is a shareholder who buy shares of the fund. Each share represents a proportion of ownership in the funds' assets.
There are different kind of mutual funds,and each kind is designed to benefit from either short term or long-term investment strategy.
Basic Types of Mutual Funds:
Long-term Funds
- Socks/Equity-funds that invest in a variety of stocks.
- Index-equity funds that attempt to mirror the performance of a specific, index such as S&P 500.
- Bond-funds that invest in a variety of bonds.
- Hybrid-funds that invest in a combination of stocks,bonds and other securities.
Short Term Funds
- Money Market-funds that invest in securities that generally in one year or less (very liquid).
The stock market is probably one of the best option s for people who wants to be involve in high -yielding investments. Studies show that the stock market has consistently outperformed all other types of investment over the long-term.However,in a rapidly changing economic and political environment,owning and monitoring a portfolio of stocks require more analysis and effort than the average person can handle.
The conviction to buy security,the patience to hold on to it as long as necessary, and the wisdom to sell at the right time are qualities that lead to success in the stock market.These qualities,however,are develop through years of experience and require abundant information and capital resources.For the ordinary investor,these qualities can only be obtained through the services of professional fund managers,or through investment in actively managed equity funds.
- Growth Funds-seek to provide long-term growth of capital by investing in growing, profitable companies.
- Total Returned Funds -seek to provide long-term growth of capital and income primarily through investments in common stocks.
- Value Funds-seek long-term capital growth by investing in a diversified stock portfolio of undervalued companies.
- World Equity Funds (Global)-seek long-term growth of capital by investing in stocks and bonds with significant exposure to countries that have developing economies or markets.
- Index Funds-seek long term capital growth by investing in a diversified portfolio with common stocks with return similar to a specific index such as S&P 500.
- Sector Funds-Seek to provide high growth of capital by concentrating assets in equities in one sector of the economy such as biotech,telecommunications, precious metals,etc.