Mutual Fund Basics
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Table of Contents
1) Mutual Funds: Introduction
2) Mutual Funds: What Are They?
3) Mutual Funds: Different Types Of Funds
4) Mutual Funds: Fund Costs
5) Mutual Funds: Picking A Mutual Fund
6) Mutual Funds: How to Read A Mutual Fund Table
7) Mutual Funds: Don't Be Fooled By Mutual Fund Ads
8) Mutual Funds: Conclusion
As you probably know, mutual funds have become extremely popular over the
last 20 years. What was once just another obscure financial instrument is now a
part of our daily lives. More than 80 million people, or one half of the households
in America, invest in mutual funds. That means that, in the United States alone,
trillions of dollars are invested in mutual funds.
In fact, to many people, investing means buying mutual funds. After all, it's
common knowledge that investing in mutual funds is (or at least should be) better
than simply letting your cash waste away in a savings account, but, for most
people, that's where the understanding of funds ends. It doesn't help that mutual
fund salespeople speak a strange language that is interspersed with jargon that
many investors don't understand.
Originally, mutual funds were heralded as a way for the little guy to get a piece of
the market. Instead of spending all your free time buried in the financial pages of
the Wall Street Journal, all you had to do was buy a mutual fund and you'd be set
on your way to financial freedom. As you might have guessed, it's not that easy.
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Mutual funds are an excellent idea in theory, but, in reality, they haven't always