Brief explanation of what mutual funds are. Types of funds (income, growth, etc) Investment options (load vs. no load; banks-brokers-phone-etc.)Information on no-load fund family recomended. Some facts/figures estimating expected return on investment. Spe

Mutual Funds

Silvia Aja

Personal Finance Acct 1333

March 15 , 2009

MUTUAL FUNDS

INTRODUCTION

Mutual funds are collective investment scheme operated by professionals who pool individuals ' investments and invests it in stocks , bonds short-term money market instruments , and other securities . With the pooled money , the fund manager , also called the portfolio manager , can buy stocks and investors own a portion of the various stocks . Before investing in a mutual fund , an investor should read the prospectus , a of the fund that includes which stocks comprise the fund

Investors can select mutual funds that match their investment ideals

In 1991 , there was 1 .347 trillion invested into mutual funds in the U .S (including 368 billion in equity funds 439 billion in bond and other fixed-income funds , and 540 billion in money market funds ) and 1 .375 trillion invested into foreign mutual funds (including 396 billion in French mutual funds 349 billion in Japanese mutual funds and 175 billion in German mutual funds , with fixed-income and money market funds making up over 50 of the there was about 4 trillion invested into U .S . mutual funds , of which over half was invested into stock funds (Morris and Morris 1998 ) At present , the global worth of mutual fund investments equals over 26 trillion (Victor and Rosenbloom 2008

In recent times , investors are increasingly turning towards mutual funds in to save for retirement and other financial objectives

TYPES OF MUTUAL FUNDS

The most common types of...