bonds, and/or cash managed by an investment company on behalf of many investors. The investment company manages the fund, and sells shares in the fund to individual

investors. When one invests in a mutual fund, they become a part-owner of a large investment portfolio, along with all the other shareholders of the fund. The fund manager

invests the contributions when shares are purchased, along with money from the other shareholders. Every day, the fund manager counts up the value of all the fund's

holdings, figures out how many shares have been purchased by shareholders, and then calculates the net asset value(NAV) of the mutual fund, which is the price of a

single share of the fund on that day. If the fund manager is doing a good job, the NAV of the fund will usually get bigger and the shares will be worth more.

There are a couple of ways that a mutual fund can make money in its portfolio. A fund can receive dividends from the stocks that it owns. Also, the fund might have money

in the bank that earns interest, or it might receive interes

or the federal government agencies. You can invest in tax-free bond funds, just as you can buy tax-free bonds, and the interest you earn is exempt from federal and

having reached peaks from which they might then plateau or decline. Finally, a fund is only as good as its management, and fund managers can change. The famous

classes: stocks (which can include international as well as U.S. stocks), bonds, cash and other securities. Many mutual funds can be purchased commission-free,

of 20.61% for the last 8 years. It returned 32.99% in 1998 (while the S&P500 returned 28.58%). It invests 25.85% of its assets in technology and is no load.

buy both kinds of stocks, building a portfolio of both growth and value stocks.

at any particular point in time. Unlike stocks, where it is possible to tell if a stock is undervalued according to several different measures, it is much harder to determine if a

Probably the biggest reason not to invest in mutual fund is, each year 80 percent of all mutual funds perform worse than average. One of the reasons for these low returns

Some common words found in the essay are:
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Approximate Word count = 1262
Approximate Pages = 5 (250 words per page double spaced)