Investing in Mutual Funds or Real Estate Chapter 14 Notes

1
Investing in Mutual Funds or Real EstateChapter
14 Notes

• Mutual Funds
• This is the most popular investment alternative
  out there! Here are the basics
• __________________________________________________
  _____________________________________
  __________________________________________________
  ________________________________.
• The investment company that manages the fund
  ______________________________________________
  ____________________________. They charge a
  _____________________________ for their services.
• Professional fund managers buy and sell based on
  the ______________________________________ and
  ______________________________________________.
• Why Investors Purchase Mutual Funds
• ________________________________________!
• You dont have to worry about following the stock
  and bond markets, or about looking for hot new
  investments. Professionals are doing the work for
  you.
• ________________________________________!
• When you invest in funds, you are diversifying
  because mutual funds purchase numerous and
  diverse stock and bond issues.
• ________________________________________!
• You can turn your money into cash whenever you
  need it (unless, of course, the fund is part of
  some type of retirement account).
• ________________________________________!
• You can get a great rate of return without as
  much risk as you would have with investing in
  individual stocks.
• Types of Mutual Funds
• Individual funds have different investment goals
  and strategies. You should choose funds that have
  goals and strategies that match your own.
• There are many different types of funds to choose
  from including Growth, income, balanced, bond,
  global and index funds.
• Growth Funds
• A ________________________________________________
  ___________________________ ______________________
  ___________. They are considered more risky but
  can really hit big.

2
Investing in Mutual Funds or Real EstateChapter
14 Notes

• Balanced Funds
• A ________________________________________________
  ___________________. ____________________
  __________________________________________________
  ________________________________________.
• Balanced funds are generally considered
  ____________________________________________.
• The goal of the fund is to _______________________
  _______________________________________________.
• For an example of a balanced fund check out
• http//www.marketwatch.com/tools/mutualfunds/overv
  iew.asp?siteidmktwsymbVWELXsid5376
• Index Funds
• An _______________________________________________
  _________________________________________
  ________________. Many of these funds are tied to
  a specific market average such as the Standard
  and Poors Index of 500 large company stocks.
• The goal of these funds is to mirror the
  movements of certain markets, going up as they go
  up.
• These funds are considered moderately risky. For
  an example of this type of fund check out
  http//www.marketwatch.com/tools/mutualfunds/100in
  dex.asp?tf9view36siteidmktw
• Money Market Funds
• __________________________________________________
  _________________________________________
  _________________________. These short-term
  maturities provided current income and maximum
  safety.
• __________________________________________________
  _________________________________________.
• For some of the top money market funds check out
  http//www.ibcdata.com/index.html
• Reading a Mutual Fund Quote
• Some of the basics
• _______________ stands for Net Asset Value. It
  refers to the dollar value of one share of the
  fund.
• _______________ stand for Year to Date Return.
  This tells you how much the fund has made or lost
  that year (listed as a percentage).
• ______________. This tells you the objective of
  the fund. (Is it a growth, balanced, income etc)