tailieunhanh - A guide to investing in mutual funds - What you should know before you buy

You’ll start by speaking with the analysts and reading their reports. (See the “Career Track” box for insights on the work of the money market credit analyst.) If the fund you’re managing ranges beyond . Treasuries, you’ll need rigorous research to determine which securities provide minimal credit risk. You’ll be investing in them for three to six months or longer and need to be confident that they’ll repay the fund at the end of the period. If they fail to do so, the fund may be forced to break the buck and exit the business: an outcome you, your employer, and the shareholders are all keen to avoid | WELLS FARGO ADVISORS A guide to investing in mutual funds What you should know before you buy Wells Fargo Advisors wants to What is a mutual fund ensure that you are investing in the A mutual fund is a company that pools money from many investors and invests the mutual funds and the share classes combined holdings in a single portfolio of securities that is professionally managed. To that best suit your investment manage risk the fund s manager attempts to diversify the fund s investments according to the fund s investment objective. Funds generally invest in a variety of investments objectives risk tolerance time including . or international stocks bonds money market instruments or any horizon and diversification needs. combination of these. Individual investors own shares of the fund whereas the fund or This guide will help you better the investment company owns the underlying investments chosen by the manager. understand the features and costs Since the first . mutual fund appeared in 1924 investors have entrusted their savings for homes education retirement and other major financial goals to mutual associated with the various share funds. As of 2010 over 7 600 mutual funds hold about 11 trillion in assets for approxi- classes as well as how your mately half of all American households. Working with some of the most prominent mutual fund families Wells Fargo Advisors offers over 350 different mutual fund Financial Advisor and Wells Fargo families to investors. Advisors are compensated when you Certain mutual funds are domiciled and operated outside of the United States and are invest in mutual funds. It will also only available to people or entities that do not qualify as . persons under the . help you take advantage of all Internal Revenue Code. These funds are called offshore mutual funds and although they are not registered as securities in the United States they function similarly to . available discounts as you work mutual funds in terms of .