1. MUTUAL FUNDS $$
What are they ?

2. Many people come together
Contribute money to a common fund
With a common goal or objective.

3. DEFINITION of a Mutual Fund
A mutual fund is a collective investment (security type) that:
enables many investors with a common objective
to pool their individual money (investment) together
into one professionally managed investment
which will in turn invest this money in line with the common objective
in order to increase the value and return (make money) of the fund
Mutual funds can invest in stocks, bonds, cash and/or other assets.
Mutual funds are perhaps the easiest and least stressful way to invest in the stock market.

4. Invest (give) their money $ To an Investment Group (Manager)
Investors
(from around the world)
RETURN on
their
INVESTMENT
$$$
Invest (give) their money $ $
MUTUAL FUND
Stocks / Bonds / Money Market
To an Investment Group (Manager)

5. Further Explanation of a Mutual Fund
Put simply, a mutual fund is a pool of money provided by individual investors, companies, and other organizations.
A fund manager is hired to invest the cash the investors have contributed.
The goal of the manager depends upon the type of fund (types of funds covered later), but the ultimate goal is to make money!
A long-term growth manager will attempt to beat the Dow Jones Industrial Average or the S&P 500 (i.e. the Stock Market).
You are having someone else buy & sell Stocks for you (& a bunch of other people) that is an expert and experienced.

7. BENEFITS of Investing in a Mutual Fund
What are the benefits of investing through a mutual fund?
Mutual funds are actively managed by a highly qualified & experienced professional money manager who constantly monitors the stocks and bonds in the fund's portfolio.
Because this is his or her primary occupation, they can devote considerably more time to selecting investments focused on the common goal rather than an individual investor.
They have a dedicated & experienced research team.
They must explain/report to you what they are investing in (called a Prospectus) and why.

8. WHY Invest in a Mutual Fund?
Why investing through a mutual fund?
Much higher rate of return (interest) than bank accounts.
Minimize value erosion (loss of $$) vs. purchasing just Stocks.
Potential losses are SHARED with other investors.
The “Portfolio” of investments spreads out the risk.
You are free to WITHDRAWAL from a mutual fund at just about any time. They are a “Liquid” asset.
You are free to INVEST (buy more) at any time.

9. HOW do I Invest in a Mutual Fund?
It is very EASY to begin investing in a Mutual Fund.
It is very EASY to withdrawal funds from a Mutual Fund.
You can meet with an investment advisor (“salesman”) or do-it-yourself by visiting a specific fund's web page or call them and request information and an application.
If you already have a brokerage account, you can purchase mutual fund shares as you would a share of stock.
Most funds have a minimum initial investment which can vary from $25 - $100,000+ with most in the $1,000 - $5,000 range.
the minimum initial investment may be substantially lowered or waived altogether if the investment is for a retirement account such as a 401k, traditional IRA or Roth IRA, and/or the investor agrees to automatic, reoccurring deductions from a checking or savings account to invest in the fund.

10. PRICING of Mutual Funds
Mutual Funds have PRICES, just like purchasing shares of Stock.
The price of a share of a mutual fund fluctuates every day, just like the price for a share of stock (“Stock Market”).
However, the prices of mutual funds do NOT vary as drastically as much as a share of stock (they contain many different stocks in the portfolio).

11. COMPARATIVE Results
The performance (track-record) of Mutual Funds is easy to determine & track.

12. TYPES of Mutual Funds
Mutual funds are organized into categories by asset class (stocks, bonds & cash):
Stock Mutual Funds (most common).
Bond Mutual Funds (often tax-free or tax-deferred).
Money Market Mutual Funds (cash-type investment).
and then further categorized by style, objective or strategy:
Size of the Company invested in (large vs. small).
Growth.
Value.
Blended.
YOU determine which is BEST for you & your future.
Mutual Funds can be specified as an Individual Retirement Account (IRA)

13. TYPES of Mutual (Stock) Funds
SIZE of BUSINESS:
Large-cap Stock Funds invest in stocks of corporations with large market capitalization greater than $11 billion.
Mid-cap Stock Funds invest in stocks of corporations of mid-size capitalization (between $2.5 billion and $11 billion.
Small-cap Stock Funds invest in stocks of corporations of small-size capitalization (between $750 million and $2.5 billion.
OBJECTIVE of FUND:
Growth Stock Funds invest in growth stocks, which are stocks of companies that are expected to grow at a rate faster than the market average.
Value Stock Funds invest in value stocks, which are stocks of companies that an investor or mutual fund manager believe to be selling at a price lower than the market value. Value Stock Funds are often called Dividend Mutual Funds because value stocks commonly pay dividends to investors, whereas the typical growth stock does not pay dividends to the investor because the corporation reinvests dividends to further grow the corporation.
Blend Stock Funds invest in a blend of growth and value stocks.

14. RISK vs. RETURN The HIGHER the RISK, The GREATER the RETURN/LOSS
The LOWER the risk,
The LOWER the return/loss.

15. Dollar Cost Averaging The importance of dollar-cost averaging
The dollar-cost averaging strategy is just as applicable to mutual funds as it is to common stock. Establishing such a plan can substantially reduce your long-term market risk and result in a higher net worth over a period of ten years or more.
BUY LOW ($) – buys more shares
SELL HIGH ($) – makes more money

16. The Categories & types of Stock, Bonds, and other investment vehicles that the Mutual Fund Manager decides to buy or invest in is driven by the stated goals & objectives of the Fund.
You can actually see (in a Report) what stocks (the amount of shares & value) the Fund (you) own.
When those stocks do well, you do well!

17. HOW do I make money ? DIVIDENDS:
Without doing basically anything, you can receive DIVIDENDS from a mutual fund.
The “fund” earns these when the investments (stocks, etc) held by the fund do “good” (dividend payout or sale of stock).
You can receive these dividends as a cash/check payment.
You can receive these dividends and & them RE-invested (purchase more shares of the same mutual fund).
SELL SHARES:
You can make money by SELLING shares (all or partial) at a HIGHER price than when you purchased them.
Purchase 100 shares x $10 = $1000
Sell 100 shares x $15 = $1500 ($500 profit).

18. What is an IRA?
An individual retirement account or IRA is a form of an "individual retirement plan“ provided by many financial institutions, that provides tax advantages for retirement savings in the U.S.
You can invest in many different “vehicles” that are considered IRA accounts (there are so many different kinds).
Most are some type of Mutual Fund.
You can have more than just one (1) retirement account.
It is an investment in your future for when you retire from working.
An IRA provides you with income to live on while enjoying your retirement…helping you keep your standard of living.
It will supplement any Social Security payments your receive.

19. What is an IRA? (cont)
During the years you invest in your IRA (the more years you invest, the more it will be worth), it should continue to grow in value (much better than any Savings Account would). About 10% per year.
The growth in your investment in your IRA is NOT taxable on your Income Taxes (unlike normal investments; i.e. regular mutual funds).
The Internal Revenue Service (IRS) puts many rules & regulations on IRA’s, and they change from time-to-time, so you must stay current on the rules.
There are limits to how much you can put-in every year.
You must keep track of how much you put in every year.
NOTE: There is a Penalty for EARLY withdrawal (before retirement).

20. Types of IRA There are several types of IRAs:
Traditional IRA – contributions are often tax-deductible, all transactions & earnings within the IRA have no tax impact, & withdrawals at retirement are taxed as income (except for those portions of the withdrawal corresponding to contributions that were not deducted). Depending upon the nature of the contribution, a traditional IRA may be referred to as a “deductible IRA” or a “non-deductible IRA.”
Roth IRA – contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free. Named for Senator William V. Roth, Jr., the Roth IRA was introduced as part of the Taxpayer Relief Act of 1997.

21. Types of IRA (cont)
SEP IRA – a provision that allows an employer (typically a small business or self-employed individual) to make retirement plan contributions into a Traditional IRA established in the employee’s name, instead of to a pension fund in the company's name.
SIMPLE IRA – a Savings Incentive Match Plan for Employees that requires employer matching contributions to the plan whenever an employee makes a contribution. The plan is similar to a 401(k) plan, but with lower contribution limits and simpler (and thus less costly) administration. Although it is termed an IRA, it is treated separately.
Rollover IRA – no real difference in tax treatment from a traditional IRA, but the funds come from a qualified plan or 403(b) account and are “rolled over” into the rollover IRA instead of contributed as cash. No other assets are commingled with these rollover amounts.

22. Other types of Retirement accounts
401(k) or 403(b) - Offered by your employer. 
For most people, this is the easiest and best place to start investing for retirement.
The money is withheld through payroll deduction, and you can save up to $18,000 of your pretax income in 2015 ($24,000 if you are 50 or older).
If you leave your job, you can roll the account over into a new employer’s 401(k) or your own IRA.
A 401(k) is usually offered by a for-profit company, while teachers and other employees of nonprofits may be offered a 403(b) instead.
Thrift Savings Plan (TSP) - Offered by the Federal government (& military).
If you are a current federal employee, you can boost your retirement savings by participating in the Thrift Savings Plan (TSP).
The TSP offers the same types of savings and tax benefits as a 401(k) plan.
Social Security.
You can begin to receive benefits beginning at age 62 (the earliest you can receive them) to 70 (when you hit your maximum amount).

23. HOW did I INVEST in a Mutual Fund?
First of all, my college Bachelor’s Degree is in Business with an emphasis on Finance.
Once I started to receive my first monthly paychecks from the U.S. Army I began to invest in Mutual Funds.
I met with an Investment Advisor and decided on what Mutual Fund I should invest in.
I then started a monthly “allotment” of $25/month (taken directly out of my paycheck every month before I received my direct deposit).
As I started to make more (pay increase), I would increase my monthly allotment.
As I started to have children and could afford to invest more, I would add additional Mutual Funds that had a different purpose or different goal.
I now have over 10 different Mutual Funds, varying in risk-return and goals/objectives.

24. SUMMARY
Everyone should make an effort to invest in at least 1 x Mutual Fund & 1x Retirement Account for their future .
They are easy to purchase and they do not cost very much (as little as $25/month).
They are relatively “safe” investments, especially if held for longer than 5 years.
They are easy to “manage” (you don’t have to check the Stock Market every day).
They provide a MUCH BETTER rate of return (interest income) than anything a bank can offer (Savings Account, CD, etc).