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Library & Tools
Thursday, December 12, 2013
2.0 Investment Basics
By Editor @ 9:11 PM :: 755 Views :: 2.0 Investment Basics
 

To begin our discussion of mutual funds, we will briefly cover the fundamental investment concepts you will need to know to better understand mutual funds and to give you a foundation with which to make better decisions about your total investment portfolio. In the Chapters that follow, we will engage in more detailed discussions of what you need to build a successful mutual fund portfolio. In this Chapter, we will briefly the following topics:

·         Stocks

·         Bonds

·         Money markets

·         Mutual funds

·         Risk versus return

·         Basic economics

·         Investment returns

·         Evaluating your portfolio

For our investment philosophy we are mainly concerned with mutual funds. As we will describe later in Chapter 3, there are many advantages to owning a mutual fund portfolio. Nonetheless, it is imperative to have a thorough understanding of the other types of investment. This is important for two reasons:

  • First, mutual funds are made up of other investments, such as stocks and bonds. Therefore you must understand the mutual fund’s underlying portfolio in order to understand the mutual fund.
  • Secondly, it is likely that your portfolio will not always contain just mutual funds. For example, even your house should be considered as a key part of your overall portfolio. Therefore, from a pragmatic point of view, you need to not only understand mutual funds, but the other key components that make up your portfolio.
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Library Contents
1.0 Introduction (1)
2.0 Investment Basics (7)
3.0 Mutual Funds (7)
4.0 Mutual Fund Selection (5)
5.0 Creating an Investment Portfolio (4)
6.0 Buying Mutual Funds (6)
7.0 Monitoring Your Investment Portfolio (3)
8.0 Investor Glossary (31)
9.0 Additional Online Resources (0)
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