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An Introduction to Mutual Funds SEC
Explains how mutual funds work, what factors to consider,
and how to avoid common pitfalls.
Mutual Fund Basics
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
(yes, with a "T") of dollars are invested in mutual funds.
Types of Mutual Funds
This section provides descriptions of the characteristics
-- such as investment objective and potential for volatility of your
investment -- of various categories of funds. These descriptions are
organized by the type of securities purchased by each fund: equities,
fixed-income, money market instruments, or some combination of these.
The Benefits of Mutual Funds
By pooling the funds of thousands of investors, mutual
funds provide full-time, high-level professional management that few
individual investors can afford to obtain independently. Such management
is vital to achieving results in today's complex markets.
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