My 401k is shrinking ever so much and I was wondering what what more profitable than a bond or CD right now? Or should I do some other form of investing?...
I am wondering what people think about "which is the best stock trader company?" and has a low commision fee and fair prices for registration with them.
I just bought about 155 shares of Citigroup for about $600.00. I have heard that the company has split up into two parts, so what will happen to the shares that I purchased. Secondly, I purchased 155 ...
I wish to know the best way to invest $5,000 for a maximum yeild in a minumum amount of time. I am a student who has seen a sudden windfall and do not want to misallocate my funds. Looking into a ...
Your 1st responder gave you a real good answer on what a mutual fund is. Now to answer the 2nd part.
For a small investor that can not afford to invest in 10 to 20 different companies and does not have the time nor the inclanation to do the research necessary, a mutual fund allows those small investors to participate in the investing in companies with a small amount of money and having someone else do the necessary research and decission making for a fee of course.
The advantage to the small investor is that he/she gets access to a diverse portfolio of investments in companies and reduces the specific risk that is associated with investing in just one or two companies. Another advantage is that there is a great deal of information available on mutual funds and there are a wide variety to choose from so that it is not too difficult to find ones that are appropriate for the individual tastes.
brian t
A mutual fund consists of a variety of stocks commensurate with your risk tolerance. The theory of investing in mutuals is to reduce risk by spreading your investment dolloar across a larger sector of stocks...Review Yahoo Finance for more information.
harlanuu@sbcglobal.net
If you invest in one stock like IBM, it goes up and down. YOUR investment will go UP and down with it.
A mutual fund is a group of 100 or so different stocks. Some go up and some go down. If most go up, your investment will go up. If most go down, your investment will go down. YOU HOPE THAT MOST WILL GO UP. If the market IS GOING UP THEN YOUR MUTUAL FUND SHOULD GO UP. A mutual fund should be smoother and not drive you crazy like some stocks will do.
Read up on this stuff and invest in DEMO accounts and see if you make any money, BEFORE YOU LOOSE IT ALL. Then when you CONSISTENTLY make money....then slowly invest real money.
The Mutual Fund Investor
Hi Ligen_Ben,
There is a good tutorial on Investopedia.com's website about mutual funds that may answer some of your questions. Here is the link:
Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net
tim t
You should know the meaning of mutual funds, before you choose to invest in mutual funds. These funds are a type of security that can be traded on the stock market, allowing shareholders to buy and sell shares in the funds. The revenue generated by purchase of shares is used by mutual fund manager to buy more shares of specific stocks, bonds, and other market securities and money market instruments.
http://debts-to-wealth.com/category/Guide-to-Mutual-Funds.html
stlopez17
A mutual fund is a form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.
Nidhi
Here is a good tutorial on Mutual funds and how to select a mutual fund.