Mutual Fund And Mutual Funds

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Mutual funds can be dated as far back as 1774, when Adriaan van Ketwich created the first ever trust fund leading to King William I in 1822 getting his idea to create the first documented closed-end investment. It was appealing for investors with small amounts of capital to invest their money together and invest more diversely while reducing risk drastically. It was after this in mutual fund boom in the Netherlands that funds started to take off like this in Switzerland then again in Scotland. This idea didn’t move to the United States until the 1890s. The following fund was called The Boston Personal Property Trust and was formed in 1893. It was also a close-ended fund. In 1907 the Alexander Fund was created in Philadelphia and was the…show more content…
Mutual funds have the same concepts as stocks; if the company makes a profit then you will earn dividends. If the company does poorly so will your investment. When you invest in mutual funds you will have a professional investment manager who buys and sell securities on you part, which to some investors can be a turn off. Many investors prefer to select all their own stocks and bonds and to rigorously check financial histories and record before making a choice. Other times people who maybe do not know how to properly investigate before investing or more times than none just do not have the funds sufficient enough to invest.
Selection
When an investor decides that they are ready to invest it can be over whelming. It has been reported that there are approximately 20,000 mutual funds available to choose from. To make it even trickier there are “types” of mutual funds. I will briefly explain what the seven most common funds are. The number one choice for many investors are money market funds. Investors in this category are normally very risk averse and have this account mostly for retirement purposes. These funds will invest in short-term fixed income securities, to include, government bonds, bankers’ acceptances, treasury bills and many other low risk investments. Of course with these low risk investments there are low returns to be expected. Generally why an older person who is not looking to gamble in the mutual

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