Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 14 – Mutual Funds and Real Estate Enjoy. Why you should invest  Mutual Funds  Diversification, professional management, small initial investments.

Similar presentations


Presentation on theme: "Chapter 14 – Mutual Funds and Real Estate Enjoy. Why you should invest  Mutual Funds  Diversification, professional management, small initial investments."— Presentation transcript:

1 Chapter 14 – Mutual Funds and Real Estate Enjoy

2 Why you should invest  Mutual Funds  Diversification, professional management, small initial investments  Many categories of funds to choose from  Real Estate  Long-term stability and growth in value  A hedge against inflation but can be difficult to sell - illiquidity

3 Mutual Funds  Mutual Funds  When it comes to making investment decisions, investors always have a choice. They can do it on their own, or they can hire a professional to make their money management choices for them. Investors who want professional management turn to mutual funds.  A mutual fund pools money from several investors and uses the money to buy a particular type of investment, such as stocks. A fund manager, who is an investment expert, makes all of the buy and sell decisions for the investments in the fund. Because mutual funds own a variety of investments, investors enjoy the benefits of diversification, which we discussed earlier. For these and other reasons, mutual funds can be a great choice for investing.  Mutual funds are created for several different purposes or objectives. Some are designed to produce income and invest in bonds, CDs, and other income-producing items. Some are designed for growth and invest in stocks or real estate.  Mutual funds invest in almost any area of the business world. If you can imagine it, there is probably a fund in existence that specializes in a particular type of business or product. There are funds that invest in technology, in food and agriculture, in government bonds, in foreign counties, in energy, and even in gold or other precious metals. So if you have a particular interest in a product or service and you want to invest in the companies in that industry, you can do so easily by hiring a professional money manager and investing in a mutual fund.

4 Types of Mutual Funds  Growth Funds  Invests in the common stock of smaller companies that have a greater potential to grow  Income Funds  Invests in the common stock of established companies and industries.  Specializes in income-producing securities which consistently pay good dividends  Balanced Funds  Invests in a mixture of stocks (preferred and common).

5 Types of Mutual Funds  Global Funds  Purchases international stocks and bonds as well as U.S. securities  Index Funds  Holds stocks that react the same as the stock markets as a whole do

6 Types of Real Estate  Vacant Land  Single Family Homes  Duplexes and Apartments  Recreation and Retirement Property


Download ppt "Chapter 14 – Mutual Funds and Real Estate Enjoy. Why you should invest  Mutual Funds  Diversification, professional management, small initial investments."

Similar presentations


Ads by Google