| Here is some basic information
regarding Mutual Funds. As with all investments, it
is always important to read the fund's prospectus and consult
with a professional broker before making an investment decision.
Fantasy Stock Market does not give investment advise. |
- A mutual fund is an investment company that
is created to pool investors' money together and invest
it in stocks, bonds, and other types of investment vehicles.
Because the mutual fund combines your money,
say $5,000, with another investor's $6,000, and so on,
it is able to purchase stocks from many different companies
from small, risky companies to blue chip companies to
international companies. You then have the advantage
of owning portions of different stocks that you may
not have been able to purchase on your own.
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What are the
two basic types of Mutual Funds? |
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- Smaller amount of capital required
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- US government or agency bond fund
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- Income Fund (Debt & Equity)
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- High-Yield Fund (Junk Bond Fund)
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- International / Global Fund
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| What is
a Mutual Fund Prospectus? |
The mutual fund prospectus:
- contains the overall goal of the fund
- indicates the types of securities the fund
invests in and the associated risks
- contains performance information (short-term
and long-tern return relative to an index, etc.)
- indicates expenses and fees associated with
the fund
- provides phone numbers and types of accounts
available
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What
is a Mutual Fund Annual Report? |
| The Mutual Fund annual report lists,
in detail, the securities held in the fund portfolio.
This includes the sector allocation and performance. |
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