Your Best Mutual Fund Investment Guide If Clueless | silvertael.info

If you feel clueless this mutual fund investment guide is written for you. It may not be the best mutual fund investment guide ever written, but it could be the simplest. Where’s your money? Chances are you already have an investment in funds, or will some time in the future.Mutual funds are the easiest way in the world to invest in stocks and bonds. And stocks and bonds are the building blocks of any investment portfolio, whether large or small. The giant insurance companies and pension funds manage their own stocks and bonds. Most individual investors rely on fund companies to do the management for them. If you invest with the best mutual fund investment companies, you get good service and the cost of investing is minimal.When you make an investment in mutual funds you simply invest a dollar amount. The fund company then issues you shares based on the price of the fund’s shares upon receipt of your money. Then they invest your money along with that of their other investors. Equity funds (stock funds) invest your money in stocks. Bond funds invest in bonds; and balanced funds invest in both stocks and bonds. The value of these shares will fluctuate. Hence the value of your investment will go up and down as you hold it.There is one exception to the above statement. The fourth major category of mutual funds is money market funds. The value of their shares is stable, at $1 a share. These are the safest funds, and they simply pay interest in the form of dividends. Funds that invest in stocks and/or bonds usually pay dividends as well. You can receive these dividends, or simply tell the fund company to reinvest your dividends to purchase more fund shares. The latter is automatically assumed if you hold mutual funds in an IRA or 401k.Very simply, you just pick the funds to invest in and send in money. Whether in your 401k, IRA, or an account you open with a financial planner or on your own with a no-load fund company… you invest your money with them and they do the rest. You will also receive periodic statements that show you what you own and the value of any mutual funds you have with them.Don’t avoid mutual funds. They are the best investment for most people most of the time. These funds are also the investment options available in most 401k plans. You need to invest in stocks and bonds to put your money to work. Otherwise, you’re stuck with money safely tucked away someplace making peanuts in the form of interest. When you think of stocks and bonds, think stock funds and bond funds.We wrap up our fund investment guide with one of life’s realities. Investment companies (mutual funds) do not work for free. The best mutual fund investment companies keep the cost of investing low, and most funds are reasonable in the cost department. If you want to invest on your own and keep the costs low, open an account with a no-load fund company. Your best mutual fund investment is often a low-cost fund with either of the following reputable fund companies: Vanguard or Fidelity. These two also happen to be the two largest investment companies in the fund business. Check them out on the internet, and call for free information.If you explain that you have money to invest and want to learn more about their mutual funds, you’ll get a nice package in the mail a few days later. Study the material, and you won’t feel so clueless anymore. Good luck and I hope this basic investment guide has been helpful.