This basic investment guide should

investment fund collection and to facilitate mutual understanding you. The choice of a fund that is not rocket science once you know is your basic choices. Our guide to the basic investment, the mutual funds into four categories on which a Fund invests in where they invest, you classify your money. The vast majority of funds adjustment in one of these categories: money market funds, bond funds, equity funds, balanced funds. Money market funds are the safest of all investments in mutual funds. They pay interest to investors as dividends. The price or value of their shares will fluctuate. Money market funds invest your money in quality secure short-term IOUs of the U.S. government, banks, other large companies, and / or other government agencies. When interest rates rise to pay interest and dividends from these funds are equally important. If prices fall, dividend yields fall. Money market funds offer investors a high level of liquidity. You can use your money to them quickly and easily, free of charge with little fear of loss. are the second type of investments in investment funds, and the safest of the second. They invest in debt securities long-term “bonds. The obligations of a fund bonds held long-term, medium term or short term in nature. They may be issued by the U.S. government, other agencies government and business. municipal bond funds pay dividends are tax exempt or tax. Investors looking for higher earnings as dividends often invest in bond funds. flucuate The bond fund share prices, there is a venture capital invested in these funds. Equity funds are the most popular and most risky type of fund. The price of their shares will flucuate, sometimes go to extremes. If you hold shares in a stock fund you are invested in equities. In general, it is the stock market, so does the value of your units. The purpose of these funds: growth (higher yields), can be a modest income dividends. There are several varieties, including growth funds, value funds, international funds and special funds. Mixed funds are a mixture of the three others come from be discussed. A traditional balanced fund is an investment fund that invests about 60% of its assets in shares, almost 40% in bonds and the little that even in the short-term debt (money market). So if you own shares in a balanced fund you are invested mainly in equities and bonds. new types of mutual funds and pension funds are the destination lifestyle. These can be moderate conservative or aggressive. ; Mutual Funds Investment Guide Summary Money Market security, liquidity, current income. for a higher income, with only moderate security. ” / P> Equity Growth Fund, perhaps with income risk. Mixed Growth Fund and moderate income, the risk depends on the specific fund.