Chen - Mutual funds

How to Invest Wisely and Not Risk Losing YourMoney

~~~

Smashwords Edition

Gamma Mouse
www.gammamouse.com

MUTUAL FUNDS
Copyright 2014 byJames Chen.
All rights reserved.

First Edition: October 2014
A Gamma Mouse eBook
Published by Gamma Mouse, a dba of Xilytics, LLC.
www.gammamouse.com

This document is geared towards providingexact and reliable information in regards to the topic and issuecovered. The publication is sold with the idea that the publisheris not required to render accounting, officially permitted, orotherwise, qualified services. If advice is necessary, legal orprofessional, a practiced individual in the profession should beordered.

From a Declaration of Principles which wasaccepted and approved equally by a Committee of the American BarAssociation and a Committee of Publishers and Associations.

In no way is it legal to reproduce,duplicate, or transmit any part of this document in eitherelectronic means or in printed format. Recording of thispublication is strictly prohibited and any storage of this documentis not allowed unless with written permission from the publisher.All rights reserved.

The information provided herein is stated tobe truthful and consistent, in that any liability, in terms ofinattention or otherwise, by any usage or abuse of any policies,processes, or directions contained within is the solitary and utterresponsibility of the recipient reader. Under no circumstances willany legal responsibility or blame be held against the publisher forany reparation, damages, or monetary loss due to the informationherein, either directly or indirectly.

Respective authors own all copyrights notheld by the publisher.

The information herein is offered forinformational purposes solely, and is universal as so. Thepresentation of the information is without contract or any type ofguarantee assurance.

The trademarks that are used are without anyconsent, and the publication of the trademark is without permissionor backing by the trademark owner. All trademarks and brands withinthis book are for clarifying purposes only and are the owned by theowners themselves, not affiliated with this document.

Smashwords Edition, License Notes

This ebook is licensed for your personalenjoyment only. This ebook may not be re-sold or given away toother people. If you would like to share this book with anotherperson, please purchase an additional copy for each recipient. Ifyoure reading this book and did not purchase it, or it was notpurchased for your use only, then please return to your favoriteebook retailer and purchase your own copy. Thank you for respectingthe hard work of this author.

Helping people achieve the income they desirehas become a huge part of my life. Being able to share theknowledge I have gained has become extremely important to me.

I consider my readers my friends. I am alwaysso appreciative that they take the time out to read my books andlearn about investing from me.

Because I want to give you the most valuableand helpful information, I have prepared a free guide of moneymaking tips as a companion to this book. Before you start reading,I encourage you to download it at http://gammamouse.com/quit_your_job since much of what I cover here fits in with the techniques in theguide.

Once you have finished with this book, I haveno doubt that you will have learned a great deal about mutual fundsinvesting. While money isnt the most important thing in life,having more does make things easier.

With just a little effort and the rightinformation, you will be amazed at what you can accomplish.

Lets get started!

Download the #1 Bestseller from Gamma MouseMedia for FREE! Hurry this offer wont last as it is for a limitedtime only. Reserve your free copy today at http://gammamouse.com .

Although dating back to the twenties, itsfull flowering of open-ended funds have experienced only fiftyyears later, with the emergence of cash funds market. The increasednumber of funds and their values, as well as the value of equity intheir hands, followed the development of "products" that thesefunds offer a wide audience. The success of investments in open orin closed-end funds, requires knowledge of the characteristics ofcertain types of securities, the functioning of their markets, thecharacteristics of the funds themselves, but also investmenttechniques.

In addition, it is necessary to know theeconomic conditions in the domestic market as well as internationalmarkets, because most funds are now dispersed and currency risk,purchasing for its portfolio of securities issued in other states.Open fund's diversified portfolio of stocks, bonds or othersecurities, which Mutual funds can be classified differentlydepending on the criteria used. By method of investing in them andwithdraw funds from them can be divided into open and closed. Openare always ready to broadcast more "action" - investment unit tointerested investors, and that one of them purchasing the same"action" -investment units at their request. Closed-end investmentfunds operate like any other joint stock companies, i.e. broadcast,as a rule, a fixed number of shares and not purchased their sharesfrom investors.

On the basis of whether their shareholderspay a commission or not, funds are awarded to the encumbered andunencumbered. Burdened fund is characterized by investors whenbuying or selling shares pay a commission from which to cover thecosts of selling and giving investment advice. If the sale is notmade through a broker rather than directly selling expenses borneby the Fund. Then it is a no-load fund.

According to what to invest, and towardsinvestment objectives, funds are divided into funds that invest instocks, mutual funds that invest in bonds and funds that invest inmoney market instruments. Depending on the investment objectives,investment funds that invest mainly in shares can be divided intoseveral groups. For some, the objective is to invest in companiesthat "rapid growth", i.e. returns of capital gains, others investin shares of companies that deliver steady income. Some opt forsome industries, while others invest in small companies that expecttheir assets and net profit to grow at a high rate. There is also adivision of the funds according to relative criteria developmentand revenues, or whether to reinvest profits or share as a dividendin the ratio. Both may vary Development, R & strong earningsand income funds.

For funds that invest in bonds of one of themost important indicators of the riskiness of eating averagematurities. Funds that hold bonds with longer maturities areexposed to greater interest rate risk. With average maturities ofbonds from the portfolio used another indicator and that theaverage rate of interest. This indicator points to a few things.First, higher interest rates mean lower interest rate. Second, ifthe high interest rates associated with short maturities, theinterest sensitivity and the risk is minimal, and vice versa.Third, the high rate of interest on bonds also leads fund in dangerwhen market interest rates fall significantly, the issuer revokesbond. And fourth, higher interest rates often mean that it is a badbeen rated issuer, as high interest rates the only way to attractlenders. Choice of fund, therefore, depends on whether the investoris more important liquidity and safety or revenue. On the otherhand, bonds are less risky than shares and their prices fluctuateless, with fluctuations less as shorter-term maturities. Inaddition to being safer, bond proceeds may be higher than that ofthe action thanks to tax incentives or exemptions.