Strategic financial planning – How mutual funds work
Strategic financial planning - Mutual funds are popular, albeit often misunderstood, investment option. For the newer investor, mutual funds offer an alternative to risking precious money on a large number of different stocks or other investments.
Pooling of Funds Is a Key Component
Mutual fund accounts contain a wide diversity of securities, permitting individuals to join others in making smaller investments, while creating dollar pools large enough to make significant purchases of quality stocks, precious metals, bonds, or U.S. Government obligations. This pooling of money gives the fund the financial strength to make both wise and large purchases. Pooling also permits smaller or less sophisticated investors to enjoy the benefits of owning a small percentage of a wide variety o...